- 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.
Australia rejects ADM takeover of GrainCorp
Nov 28 2013, 21:40 ET