US ADM makes takeover bid for Australia GrainCorp

02 May 2013 00:46  [Source: ICIS news]

HOUSTON (ICIS)--US-based agribusiness Archer Daniels Midland (ADM) said on Wednesday that it will make a takeover bid to acquire Australia-based GrainCorp.

ADM currently owns 19.8% of GrainCorp's shares.

The company's offer stands at Australia dollar (A$) 12.20/share. In addition, GrainCorp will pay its shareholders dividends totalling A$1.00/share before the deal closes, ADM said.

ADM approached GrainCorp in October with a non-binding offer of A$11.75/share and later raised it to A$12.20/share, but GrainCorp rejected it in December.

On Wednesday, ADM said GrainCorp has indicated that ADM’s offer would be recommended to its board for approval.

“With the world’s population growing by half a billion people every decade, and with rising incomes driving increased consumption of grains and protein, global demand for agricultural products will continue to see significant growth. GrainCorp provides an excellent platform to serve that growth, particularly in fast-growing markets in the Middle East, Africa and Asia,” said ADM CEO Patricia Woertz.

“Together, ADM and GrainCorp will give customers around the world access to a more diversified origination portfolio while providing Australian growers with greater access to world markets, enhanced logistics and leading market insight,” she added.

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By: Tracy Dang
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