Inghams is already a vertically integrated producer. It does not need the feed capacity of Ridley in the locations of Ridley's millls. It would also have severe competition implications and there would be a good chance for such a deal not to be approved. Ridley is currently supplying feed to many of Inghams competitor.
Graincorp would be stepping outside its core business to snap up something like Ridley. I don't see the clear synergy benefits.
Regarding it's 3 year old pricing. That is irrelevant. Today's pricing is based on current and future expected earnings. $1.50 was overvalued then and would likely be on the optimistic end of valuations now.
RIC Price at posting:
$1.24 Sentiment: Buy Disclosure: Held
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