Investment Fund Pressures Agrium to Cut Costs, Split Business

JANA Partners LLC, an investment group holding just over 6% of Agrium’s shares, is rallying Agrium’s other stockholders in an effort to put serious pressure on the company to change the way it operates. In an interesting turn, Jana has devoted an entire website to its cause — see it here — and has gone public saying that the company is building a critical mass of support among shareholders.

JANA is calling out Agrium over several areas of its business where it feels Agrium needs to improve. Among the critiques are what JANA is calling the 5Cs — costs, controls, capital allocation, conglomerate structure and corporate governance. JANA has nominated 5 people to sit on Agrium’s 11-member board, noting that one of those people are a member of the JANA firm.

The investment firm is calling on Agrium to appoint these five members to the board and proposes a business split of the company — a fertilizer production arm and a fertilizer retail arm.

Agrium holds its annual general meeting in May.

For more on JANA’s plans, visit the website geared towards other shareholders here.

 

RealAgriculture News Team

A team effort of RealAgriculture's videographers and editorial staff to make sure that you have the latest in what is happening in agriculture.

Trending

The story sustainability tells: the grassroots effort to serve McDonald’s demand

It was a big week for the Canadian Roundtable for Sustainable Beef (CRSB) and McDonald's Canada. McDonald’s Canada says it will soon become the first company in Canada to serve beef from Canadian farms and ranches that are “certified sustainable." Many of the beef producers participating in the pilot project are very excited about the…Read more »

Related

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.