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.

BLOG

Consumers are cooking for social media - and how brands can capitalise

We hear a lot in the food industry about two interconnected trends: and social media and “foodie” culture....

BLOG

Nestle announces changes to senior team with new CEO on horizon

Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....

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....

just-food homepage



Forgot your password?