With Queensland Cotton Holdings Ltd. in play, an easing of Australia’s drought and the likely break-up of scandal-hit wheat exporter AWB Ltd., Reuters reports that a wave of takeover activity is likely to seize Australian grains and farm groups.

That would add yet another layer to Australia’s thickening blanket of M&A activity, which has been fueled by a surge in private equity buyers combing the country’s hot economy for deals. Australian retailers were among the main LBO targets. Reuters reports here on private equity’s role in Oz.

But now Aussie farm groups appear to be the next sector set for consolidation. Reuters says:

Deregulation of state-owned marketing boards and farmer co-operatives set up in past decades to sell Australia’s big grain crops has already seen the number of players fall from 15 in the 1980s to four.
 
Those remaining are AWB, barley exporter ABB Grain Ltd., east coast handler and trader GrainCorp Ltd. and Western Australia’s unlisted Co-operative Bulk Handling.

But the article adds that all four have formidable built-in defenses.

(Photo: Old Adaminaby, Australia. Reuters file)