Australia to Decide on ADM's A$3 Billion Bid GrainCorp Takeover by Dec 17

   By Gillian Tan 
 

SYDNEY--Archer Daniels Midland Co. (ADM) will find out whether it has received approval from Australia's Foreign Investment Review Board for its planned 3 billion Australian dollar (US$2.8 billion) acquisition of GrainCorp Ltd. (GNC.AU) in about two months, the nation's treasurer said Friday.

Joe Hockey, who oversees FIRB, said in a statement Friday that he signed an order extending the time period in which a decision would be made, setting a deadline of Dec. 17.

"The government welcomes foreign investment because of the benefits that it provides to the Australian economy," Mr. Hockey said in the statement. "Australia's foreign investment review framework allows the government to examine foreign investment applications on a case-by-case basis to ensure they are not contrary to Australia's national interest."

He described GrainCorp, which has grain processing, storage, transport and marketing operations across New South Wales, Victoria and Queensland states, as a "significant Australian company."

GrainCorp shares closed Friday at A$12.35 a share, a 6.4% discount to the A$13.20 that shareholders will receive under ADM's offer.

The deal has already received clearance from regulators including the Australian Competition and Consumer Commission and the European Commission. The Ministry of Commerce of the Government of the People's Republic of China, known as Mofcom, is yet to pass its judgment on the deal. GrainCorp owns a bulk liquid port terminal in Shanghai.

-Write to Gillian Tan at [e-mail]