Sept. 9 (Bloomberg) -- Viterra Inc., Canada’s largest grain handler, won support from shareholders of ABB Grain Ltd. for its A$1.6 billion ($1.4 billion) takeover bid.

Viterra got 84 percent votes in favor of its offer at a meeting of shareholders of Australia’s largest barley exporter in Adelaide today, Kenn Pearce, spokesman for ABB Grain said by telephone. The deal needed 75 percent support.

The deal will allow Regina, Saskatchewan-based Viterra to add supply from the world’s second-largest barley exporter and No. 4 wheat shipper. Viterra has previously expanded through acquisitions, acquiring Winnipeg, Manitoba-based rival Agricore United in June 2007 for C$1.76 billion ($1.6 billion).

“The ABB acquisition can transform Viterra into a multinational agriculture handling company with greater Asian exposure and climate or earnings diversification,” Nelson Mah, an analyst at Northern Securities Inc., said in a Sept. 1 note.

Viterra Chief Executive Mayo Schmidt said in a May interview that he expects to make more acquisitions and is willing to increase the company’s debt levels to do so. The company spent less than $100 million in the fiscal year ended Oct. 31 on seven smaller acquisitions, he said.

ABB Grain investors will receive the equivalent of A$9.11 to A$9.59 per share in cash, stock and special dividends, the companies said on May 19.

Strongest Balance Sheet

The combined company will have “one of the strongest balance sheets in the industry,” ABB Grain and Viterra said in a letter to shareholders on July 7. It would have access to grain from Canada and Australia, which together account for 37 percent of world exports of wheat, barley and canola, the companies said.

Viterra fell 1 cent to C$9.17 yesterday in Toronto Stock Exchange trading. The shares declined 3.5 percent this year. ABB gained 0.9 percent to A$9.08 before it was halted from trade ahead of the vote.

Farmers in the states of South Australia and Victoria account for about 45 percent of ABB shares outstanding, according to ABB Grain.

ABB Grain has 111 inland grain storage sites in Australia, as well as seven export ports, according to its Web site. The company’s Joe White Maltings division controls about 9 percent of the global market for the beer-making ingredient. ABB Grain’s range of rural services include fertilizer and agricultural chemical supply, wool and livestock activities.

ABB Grain cut its full-year profit forecast for a third time on Aug. 28 because of a drop in fertilizer prices. Underlying profit may be between A$33 million and A$43 million in the 12 months to Sept. 30, the company said that day.

Viterra, which makes livestock feed and has oat milling and malting businesses, operates 253 retail facilities across Western Canada supplying seed, crop protection products and fertilizers.

To contact the reporters on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net; Choy Leng Yeong in Seattle at clyeong@bloomberg.net.

Last Updated: September 8, 2009 23:34 EDT