November 27, 2013

In relation to its proposed acquisition of GrainCorp Limited, Archer Daniels Midland Company (ADM) announced a package of additional commitments.

The key elements of that package are: an additional AUD200 million (US$183 million) investment to strengthen Australian agricultural infrastructure, with specific emphasis on rail enhancement projects; price caps on grain handling charges at silos and ports; commitment to grain infrastructure access for growers and third parties; commitment to "open access" regime for port services; a grower and community advisory board with representation from New South Wales, Victoria and Queensland, as well as regular public grower consultation; and support for expanded grain stocks information arrangements.

"Throughout our effort to secure approvals for our proposed acquisition of GrainCorp, we have worked constructively to create value for grain growers and the Australian economy as well as shareholders of GrainCorp and ADM," said Ian Pinner, president, ADM Grain.

"These commitments are in addition to the existing capital expenditure and other commitments we have set out in our Bidder's Statement, which included an AUD50 million (US$46 million) enhancement to GrainCorp's planned capital expenditure over the next few years. The additional capital investment that ADM will bring to GrainCorp represents a 100% increase in GrainCorp's original AUD250 million (US$228 million) capital expenditure budget prior to ADM's proposal. Taken together, the capital investments ADM has committed to support or make for the GrainCorp business total AUD500 million (US$456 million)," Pinner added.

The commitments described above would be put into effect upon the closing of ADM's proposed acquisition of GrainCorp.