29 October 2013 18:46 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) said on Tuesday it expects to receive final regulatory approval by year’s end and complete the $3.3bn (€2.4bn) acquisition of Australian agriculture company GrainCorp by Q1 2014.
Presently ADM has received clearance from seven governmental agencies including Australia, Canada, the European Commission, Korea, South Africa, Japan and the US Federal Trade Commission.
Regulators in China and officials with Australia’s Foreign Investment Review Board have yet to sign off on the transaction but ADM’s Chief Operating Officer Juan Ricardo Luciano said the Australian authorities have indicated a decision will be made by mid-December.
ADM currently owns 19.8% of GrainCorp and has taken the position that 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.
“Our effort to expand the business includes our pending acquisition of GrainCorp. We are making good progress here, with seven out of nine jurisdictions having cleared the deal,” said Luciano.
“We continue to work with authorities in Australia and China to achieve the final approvals. Earlier this month, the Australian Treasurer issued an interim order, which commits the government to a decision by December 17 at the latest. Based on this, we expect closing to be sometime in the first quarter of 2014.”
($1 = €0.72)
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