29 July 2013 23:57 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) has received approval from for its proposed $3.3bn acquisition of Australian agriculture company GrainCorp, the US agricultural giant announced on Monday .
With the European regulatory agreement ADM now has received approval from six governmental agencies including Canada, Australia, South Africa, Japan and the US Federal Trade Commission. ADM is awaiting clearance from regulators in China, South Korea and Australia.
In June the proposed takeover was cleared by the Australian Competition and Consumer Commission, 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 when a decision by the remaining regulators will be made and allow the company to finalise the acquisition of the remainder of GrainCorp, of which ADM currently owns 19.8%.
There have been some concerns that the acquisition would cause issues in terms of infrastructure and access to commodity facilities, but ADM has said the merger will benefit Australian growers and increase access to global markets.
Australia exports approximately 70% of its farm products, but the export infrastructure is in critical need of investment. If approved, the acquisition would give the company control of seven eastern ports, which take in 90% of the region’s exports.-
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