25 July 2013 03:13 [Source: ICIS news]
HOUSTON (ICIS)--Officials with Archer Daniels Midland (ADM) confirmed on Wednesday it has received approval from the Japan Fair Trade Commission for the proposed $3.3bn (€2.5bn) acquisition of Australian agriculture company GrainCorp.
With the Japanese regulatory agreement, ADM has now received approval from five governmental agencies, including Canada’s Competition Bureau, the Australian Competition and Consumer Commission (ACCC), South Africa’s Competition Commission and the US Federal Trade Commission.
Currently ADM is awaiting clearance from regulators in China, the EU, South Korea and Australia.
In June, the proposed takeover was cleared by the ACCC but a spokesperson with ADM said the acquisition is still currently pending the approval of the Foreign Investment Review Board.
ADM officials have said they do not know and will not speculate when a decision by the remaining regulators will occur, or if denial by any country would hinder their attempts to acquire GrainCorp, of which ADM currently owns 19.8%.
There have been some concerns that the acquisition of GrainCorp would cause issues in terms of infrastructure and access to commodity facilities, but ADM’s position has been that the merger will benefit Australian growers and increase access to global markets.
Australia exports approximately 70% of its farm products but nearly all the export infrastructure is controlled by foreign entities and is in critical need of investment.
ADM has said access would not be an issue for the company. If approved, the acquisition would give the company control of seven eastern ports which take in 90% of the region’s exports.
($1 = €0.76)
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