O’Connors Farm Machinery has confirmed the deal to buy out machinery dealer Agrimac has fallen over. Source: The Weekly Times
The takeover bid would have increased the number of O’Connors dealerships to nine, making it the largest dealer network in Australia.
O’Connors has six dealerships with branches in Birchip, Horsham, Warracknabeal, Shepparton, Corowa and Bordertown and would have picked up the St Arnaud, Warrnambool and Ballarat Agrimac dealerships.
Agrimac is a dealer for Case IH and Kubota tractors in those areas, while O’Connors stocks only Case IH tractors.
A month ago, the deal looked set in stone with confirmation that it would go ahead by July 1 this year. Staff at both dealership networks had been informed and given assurances that staff levels would not be affected.
Agrimac and O’Connors would not be drawn on the reasons for the deal’s demise. Instead O’Connors released a statement.
“The management and board of O’Connors have agreed not to proceed with the acquisition of Agrimac,” it said.
“None of the reasons to not pursue the acquisition reflect any negative sentiment or concerns about the Agrimac business, moreover the decision has been made mutually with the Agrimac management team.
“O’Connors will continue to talk with Agrimac about their plans for the future, and in the meantime, both companies will pursue their own interests.”