ADM's acquisition of GrainCorp curtailed by Australian authorities

  
 

The Australian Federal Treasurer has put a stop to Archer Daniels Midland Company's (ADM) acquisition of GrainCorp, citing prohibitions under the Foreign Acquisition & Takeovers Act.

GrainCorp's Chairman Don Taylor said it was extremely disappointing that the transaction would not be proceeding as planned, stating that "Australian agriculture has been prevented from realising the potential benefits from the significant capital ADM would have invested in the long term future of the industry."

Despite that, he said, "The Board remains confident in GrainCorp's ability to continue to implement our long-term strategy, underpinned by our program of strategic growth initiatives and strong market fundamentals."

ADM Chairman and CEO Patricia Woertz said, "We are disappointed by this decision. We are confident that our acquisition of GrainCorp would have created value for shareholders of ADM and GrainCorp, as well as grain growers and the Australian economy."

"Throughout this process, we worked constructively to create an arrangement that would be in Australia's best interests and made substantial commitments to address issues that were important to stakeholders," she said. Woertz confirmed there were no conditions or undertakings requested of ADM by the Treasurer.

ADM holds a 19.85% interest in GrainCorp and, under the terms of the Takeover Bid Implementation Deed, must continue to hold this interest until at least 31 December 2013.