company logo

ADM extends deadline to acquire GrainCorp

October 28, 2013

US agribusiness giant Archer Daniels Midland Company (ADM) has pushed back the deadline of its US$3.4bn takeover offer for Australia’s GrainCorp Ltd by more than two months, after failing to shore up enough shareholder support, Business Spectator reported in September.

US agribusiness giant Archer Daniels Midland Company (ADM) has pushed back the deadline of its US$3.4bn takeover offer for Australia’s GrainCorp Ltd by more than two months, after failing to shore up enough shareholder support, Business Spectator reported in September.
In May, ADM announced that it would make a cash offer to acquire the outstanding common shares of GrainCorp for A$12.20/share.
However, by 9 September, ADM had only secured half the support needed for the takeover. In a statement to the Australian Securities Exchange, ADM said its offer to shareholders was to close on 31 August, but the group had extended it to 16 November.
The Australian Competition and Consumer Commission – which initially suggested greater scrutiny was needed on the proposals – confirmed on 9 September that it would not oppose the bid. ADM had also gained clearances from regulators in the USA, Europe, Japan, South Africa, Canada and South Korea.
However, opponents to the deal have expressed concerns that the takeover would erode competition and increase fees.
Australian National Party leader Warren Truss – soon to be deputy prime minister – said: “I have serious reservations about whether the sale of GrainCorp to ADM is in the national interest. I am concerned that the whole of the east coast grain export facilities, with (one) exception ... in Victoria, will become foreign-owned if this takeover occurs.”
GrainCorp’s core business is the receival and storage of grain and related commodities. It also provides logistics and markets these commodities.
GrainCorp Oils is a leading edible oils business in Australia and New Zealand, with more than 300,000 tonnes of annual oilseed crushing capacity, 280,000 tonnes of edible fats and oils refining and packaging capacity, 13 bulk liquid port terminals handling more than 1Mm3/year, and several complementary downstream businesses in used edible oil recycling and animal feed processing.


Related News