07 August 2013 17:19 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) announced Wednesday it has received approval from the Korea Fair Trade Commission for the proposed $3.3bn (€2.5bn) acquisition of Australian agriculture company GrainCorp.
With the Korean regulatory agreement, ADM has received approval from seven governmental agencies including Australia, Canada, the European Commission, South Africa, Japan and the US Federal Trade Commission. Currently ADM is awaiting clearance from regulators in China and a final board approval in Australia.
In June the acquisition was cleared by the Australian Competition and Consumer Commission, but a spokesperson with ADM said the acquisition is still 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 finalised, allowing the company to complete the acquisition of the remaining portion of GrainCorp. ADM currently owns 19.8% of GrainCorp.
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 account for 90% of the region’s exports.
($1 = €0.75)
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