Australia Blocks ADM's A$3 Billion Takeover Offer for GrainCorp

   By Rob Taylor 
 

SYDNEY--Australia blocked a 3.0 billion Australian dollar (US$2.7 billion) bid by U.S. agribusiness Archer Daniels Midland Co. (ADM) to buy grain handler GrainCorp. on grounds that is against the country's national interest.

The move follows lobbying by farmers and some conservative politicians against the deal, which would have seen 60% of wheat shipments from Australia controlled by three companies--ADM, Glencore Xstrata PLC (GLEN.LN) and Cargill Inc. It would also have put almost all of the country's export infrastructure under foreign ownership.

However, a decision to veto the deal also raises questions about the commitment of the new center-right Liberal-National government to welcome foreign investment, seen as critical to supporting a slowing economy as a decadelong resources boom ends.

"I have made an order under the foreign acquisitons and takeovers act prohibiting the proposed aquisition by ADM of GrainCorp," Treasurer Joe Hockey said.

-Write to Rob Taylor at [e-mail]

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