Blog: ADM moves to reassure opposers of GrainCorp deal

Michelle Russell | 6 November 2013

US agribusiness giant Archer Daniels Midland has attempted to dampen growing political and industry opposition to its acquisition of Australian grain trader GrainCorp in the country.

ADM tabled an offer of A$12.2 per share for GrainCorp earlier this year after completing an agreed period of due diligence on the firm.

The Australian Competition and Consumer Commission approved the deal in June, but the acquisition is still to be given the okay by the country's federal government.

As the deadline for authorities to rule on the A$3bn (US$) deal has approached opposition has steadily grown.

The deal has resulted in concern from growers that they could be hit with higher grain-handling fees. It also appears to have split the Coalition, with the Nationals warning Australia will lose control of its own food security if the sale is approved.

ADM grains president Ian Pinner, however, has moved to reassure growers it won't restrict access to ports or hike fees to uncompetitive levels.

"When we talk about the investment that we'll make in the supply chain ... and the commitments that ADM is making, we're not going to change the way GrainCorp operates, in fact we want to improve it,'' he told Australia's ABC radio today (6 November).

"With regards to fees ... it's not in our interests to be uncompetitive in a marketplace that has a lot of choice. Our goal is to ensure through being the preferred supplier that we're bringing as much grain through those assets as possible and to do that we have to be competitive."

Pinner said he believes farmers will benefit from wider access to foreign markets through ADM's global network.

Most foreign investment deals are approved by Australian authorities, particularly those involving US-based companies, a long-time ally of the country.

A decision on the deal is expected to be made by 17 December.

BLOG

Blue Bell Creameries involved in another safety scare

Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...

BLOG

Hain Celestial's Orchard House deal waved through

The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....

BLOG

Hershey's unusual move to share sales data

Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....

BLOG

Are EU nations using Brexit to revisit country of origin labeling?

As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...

just-food homepage



Forgot your password?