Elders reached an in-principle agreement with Bendigo and Adelaide Bank (ASX:BEN) to terminate their banking relationship.
The agreement previously allowed Elders Rural Services Australia to originate and refer to the bank's loan and deposit products. It accounted for a gross margin of approximately $11.3 million to Elders' Financial Services business.
Elders will be paid $17 million by the Bendigo and Adelaide Bank and the parties will be released from their respective obligations.
The change is due to shifts in the financial services strategies at both companies.