A group of Australian MPs have joined forces to oppose the takeover of GrainCorp by US agribusiness giant Archer Daniels Midland.
In May, ADM offered A$12.20 under the terms of a $3bn deal struck with GrainCorp, bringing an end to months of wrangling between the two firms. Graincorp had previously turned down the offer after saying it under-valued the company.
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However, four federal MPs have teamed up in a bid to stop the sale of Australia’s largest agribusiness, claiming the deal would put “one of Australia’s greatest industries” in “jeopardy”.
The MPs – Clive Palmer, Bob Katter, Andrew Wilkie and Adam Bandt – have said they will put forward a private members bill to stop the grain handler being sold.
“The proposed sale of GrainCorp to ADM must not be allowed to proceed,” said The Independent Member for Denison, Andrew Wilkie. “The foreign acquisition might well bolster GrainCorp, but more likely is that GrainCorp and many Australian farmers would become pawns in ADM’s domination of the global grain market.
“If the Australian Government wants to help Australian grain farmers, instead of contemplating the selloff of the farm it should instead be leading a public discussion about the value of establishing a single wheat desk. This would give Australian farmers more muscle in global markets and help ensure a better price for their grain.”
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By GlobalDataBandt added ADM is “only interested in maximising the return to its shareholders”.
“To that end it would want to pay the lowest price possible to Australian farmers. It’s as simple as that,” he said.
Australian Prime Minister Tony Abbott was last week forced to deny he had tried to pressure Treasurer Joe Hockey to reject the takeover after reports suggested he could intervene in the sale.
Sources close to Abbott told The Australian he denied he tried to exert any pressure on Hockey who is due to make a decision on the takeover bid by 17 December. The PM reportedly said he believed foreign investment decisions were “a matter for the Treasurer”, the source said.
The US National Farmers Union has, meanwhile, reportedly voiced its concern over the deal saying the acquisition will be “bad news” for Australian farmers and has called for the deal to be rejected, according to ABC News.
