Australia’s Grainco has said it will recommend its shareholders accept a A$105m (US$70.2m) takeover offer from agribusiness GrainCorp.

Grainco executive chairman Don Taylor said the GrainCorp offer of A$1.39 a share “is subject to minor final adjustments and represents a clearly attractive offer to Grainco Australia shareholders,” reported Dow Jones Commodities Service.

Grainco shareholders are due to vote on the proposed takeover in mid-August and if the deal goes ahead it will represent a major rationalisation in Australia’s grain storage and handling industry. The number of major players in the industry in Australia’s eastern states will be reduced to just three operators.

The two companies have been in talks for some time regarding a takeover deal, although Grainco also held talks with Australia’s biggest grain company AWB.

GrainCorp’s proposed takeover of Grainco has already received approval from antitrust regulator Australian Competition and Consumer Association, on the condition that Grainco sells its interest in grain silo firm AusBulk.