Australia rejects ADM takeover of GrainCorp

In a rare and surprising decision, Australia's government has rejected Archer Daniels Midland's (ADM) $2.6B takeover bid for GrainCorp (GRCLF), bowing to pressure from the country's grain growers.

Treasurer Joe Hockey said he rejected the proposal on national interest grounds after Australia's Foreign Investment Review Board failed to reach a consensus recommendation; he said he was open to ADM increasing its ~20% stake in GrainCorp to almost 25%, but his ruling effectively prevents GrainCorp from any takeover.

ADM is more U.S.-focused than rivals such as Cargill and Bunge (BG), and it had wanted GrainCorp to improve its access to fast-growing Asian markets.

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