Elders Secures ACCC Approval for Delta Agribusiness Acquisition

About Elders Ltd

Elders Limited (ASX: ELD), a cornerstone of Australian agribusiness with a 185-year history, has strengthened its national footprint following regulatory clearance for the acquisition of Delta Agribusiness Pty Ltd (Delta).

The decision by the Australian Competition and Consumer Commission (ACCC) marks a pivotal step in Elders’ growth strategy, reinforcing its commitment to expanding regional service coverage while maintaining competition and value for Australian farmers.

With operations across rural merchandise, agency, real estate, and financial services, Elders continues to consolidate its position as a leading provider of integrated agricultural solutions amid a dynamic and weather-sensitive industry environment.

Strategic Developments

The ACCC announced on 9 October 2025 that it would not oppose Elders’ acquisition of Delta Agribusiness, subject to an undertaking under section 87B of the Competition and Consumer Act 2010. This undertaking requires the divestment of six Delta branches in

Western Australia — located in Dalwallinu, Kalannie, Albany, Manypeaks, Wellstead, and Hyden — to preserve regional competition.

Elders confirmed that these six branches contributed an estimated FY25 EBIT of less than $300,000, representing minimal financial impact relative to the scale of the overall transaction. The acquisition is scheduled for completion on 3 November 2025, marking a major milestone in Elders’ ongoing national expansion strategy.

Trading and Market Update

Delta’s FY25 results were impacted by dry seasonal conditions across southern Australia and a delayed start to the cropping season. These factors led to lower retail sales and compressed margins, as crop protection traders sought to reduce inventory risk through competitive pricing.

Elders noted that Delta’s performance remains consistent with the original acquisition assumptions underpinning the December 2024 equity raise. The company expects Delta’s earnings to be weighted toward Elders’ second-half performance following completion of the transaction.

Elders’ own retail division faced similar headwinds, particularly in South Australia and western Victoria, where prolonged drought conditions affected product demand and client activity during the March–May period. However, conditions improved significantly from June, with a rebound in demand for crop protection products during the final quarter of the financial year.

Financial Outlook and Performance

Elders’ underlying EBIT for FY25 is projected between $142 million and $146 million, reflecting solid growth on the FY24 result despite a challenging operating environment. This range remains preliminary and unaudited, pending finalisation of statutory accounts.

The company expects improved leverage ratios compared with FY24, excluding the one-off impact of the Delta equity raise. Cash conversion — a key measure of working capital efficiency — is forecast to be ahead of the company’s long-term target, underscoring robust operational discipline. Elders’ FY25 financial results will be released before market open on 17 November 2025, providing further detail on integration plans, capital deployment, and updated FY26 guidance.

Industry Context

The acquisition of Delta Agribusiness comes amid a period of significant consolidation across Australia’s agricultural supply sector. With farmers facing increasing volatility from climate variability, input cost inflation, and supply chain pressures, scale and network coverage have become crucial differentiators for service providers.

Elders’ strategy reflects a balanced approach between growth and resilience, combining local expertise with national distribution capacity. The Delta acquisition will expand Elders’ geographic reach and customer base, particularly in New South Wales and regional Western Australia, while creating operational synergies across logistics, procurement, and advisory services.

Moreover, by integrating Delta’s established relationships and technology systems, Elders aims to enhance its ability to deliver data-driven agronomic insights, digital tools, and customised product solutions — further strengthening client loyalty in an increasingly competitive marketplace.

Conclusion

The ACCC’s approval of the Delta Agribusiness acquisition marks a defining moment for Elders as it continues to execute on its Eight Point Plan for sustainable growth and shareholder value.

Despite the challenges of dry seasonal conditions and competitive pressures, the company’s earnings resilience, strong cash performance, and disciplined integration strategy highlight its ability to navigate cyclical headwinds while capitalising on long-term agricultural opportunities.

With the acquisition set to complete in November, Elders enters FY26 with a strengthened market position, diversified regional exposure, and renewed momentum heading into Australia’s next cropping cycle.