Rabobank to acquire US agriculture firm

Rabobank Group has agreed to acquire Ag Services (AG) of America Inc in a bid valuing the US company at $47m (€40.5m).

Rabobank is bidding $8.50 per share for AG, a premium of 39 % on Friday's closing price. The takeover will be financed with existing funds.

The Iowa-based AG Services supplies crop production financing to mainly corn and soybean farmers in the US.

The company employs approximately 115 people. The sale is expected to close at the end of December.

In March 2002 Rabobank acquired ACC bank in Ireland, the bank continues to trade as ACCBank.

This move made Rabobank the first continental European financial institution to develop a retail presence in Ireland, alongside the bank's existing operations in the IFSC, where it employs 60 people.