Banks and Cargill to merge

By Robert Harris

BANKS Agriculture and Cargill announced on Wednesday (31 January) that they are to merge their UK operations.

The merger will create the second-largest agricultural merchanting business in the country.

Directors expect to complete the move by early March 2001.

The new company, Banks Cargill Agriculture, will have a turnover of more than 450 million a year and will employ over 400 people.

It will be based at existing centres at Swinderby, Lincolnshire; Sandy, Bedfordshire; and Andover, Hampshire.

The new company will trade grain, fertiliser, agrochemicals, seed and straights.

It will have an overall market share of about 15%, said Mark Aitchison, general manager of Cargills agricultural division.

“Both companies have a long-term vision for UK agriculture,” he added.

“We both recognise that, to be successful, we have to have a significant market share, and have to be strong in a range of different activities.”

Richard Banks, managing director of Banks Agriculture, said the move demonstrated a solid commitment to UK farming.

“It gets rid of the uncertainty that was hanging over both companies. The merger is a clear indication that we are in this industry for the long term.”

Combined grain sales will exceed 3m tonnes a year, about 17% market share, while the joint fertiliser businesses will top 600,000t.

That puts the new business a close second to Dalgety.

Predicted annual agrochemical sales are put at 30-35m, and the company will sell 40,000t of fertiliser and 300,000t of straights a year.

The merger follows the creation of the Banks/Cargill joint venture seed processing company, Newtech Processing, in 1999.

The seed operation is set to open a new 3m plant in Sandy this summer.