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CARGILL BUYING RIVAL CONTINENTAL'S GRAIN BUSINESS




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>From Agnet

CARGILL BUYING RIVAL CONTINENTAL'S GRAIN BUSINESS Nov. 10/98 Reuters By Peter
Bohan CHICAGO -- Cargill Inc., the world's biggest grain trading company, was
cited as saying today it would buy the grain business of long-time rival
Continental Grain in a bid to strengthen its already dominant position in the
industry.

Minneapolis-based Cargill and New York-based Continental Grain for years have
ranked as the top two grain exporters from the United States, the world's
biggest exporting nation.

The deal would mark the end of Continental's 185-year history as a grain
handler.

The story notes that terms of the transaction, which the companies expect to
complete early next year, were not announced. But the deal will transfer
ownership of 65 grain elevators in the United States and 21 overseas.

A Justice Department spokeswoman was cited as saying the U.S. government will
review the deal, and antitrust regulators in Europe are likely to follow suit.

Cargill earned $468 million on sales of $51 billion in the year ended May 31,
down from $814 million on sales of $56 billion a year earlier.

Cargill has more than 1,000 plants and facilities in 65 countries. Aside from
grain exporting, it is involved in flour and corn milling, animal feed and
meat
production, oilseed trading and processing, and trading coffee and sugar. Its
other businesses include steel, fertilizer and salt production, shipping, and
leasing and financial brokerage services.