Blog: Dean BestAustralia pushes back ruling on ADM's bid to buy GrainCorp

Dean Best | 4 October 2013

The new Australian government is to give itself longer to scrutinise Archer Daniels Midland's plan to buy local agribusiness GrainCorp.

A decision on the A$2.6bn takeover is now due by 17 December, Australian Treasure Joe Hockey said today (4 October).

The new deadline would meet ADM's expectations that the deal would close this year but it will give Australian officials that look at foreign takeovers to see if it needs to place conditions on the acquisition.

"Given the size of this transaction and the complex nature of the issues involved, I have decided to extend the statutory time period. This will allow sufficient time for the new government to carefully consider all the relevant issues and advice from the Foreign Investment Review Board before making a decision," Hockey said.

ADM had to work hard to win over the GrainCorp board. It first bid for the business a year ago, an offer that was rejected for under-valuing the business. A second bid was also turned down before ADM won over the GrainCorp board at the third attempt in April.

ADM has already secured anti-trust approval for the deal in markets from the EU to Japan should the acquisition be approved in Australia.

Buying GrainCorp will give ADM a business set to be well placed to meet rising demand for commodities to feed the growing populations of Asia.

NEWS

UK's Lomond acquires food distribution business Hall’s Direct

Glasgow-based Lomond, the owner of the bakery Cake, has acquired Scottish wholesale food distribution business Hall's Direct....

BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

NEWS

Willi-Food reports mixed first-quarter results

Israel-based food group G. Willi-Food yesterday (25 May) booked a 9.3% fall in first-quarter net profit over the year-ago period but reported its sales inched upwards....

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?