ADM ups stake in GrainCorp with aim to acquire business

by World Grain Staff
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SYDNEY, AUSTRALIA — Archer Daniels Midland Co. (ADM) announced on Oct. 19 that it has acquired 14.9% of GrainCorp Limited shares. ADM previously held economic interest in 4.9%, and on Oct. 18 ADM acquired an additional 10% economic interest at a price of A$11.75 per share.
ADM has approached GrainCorp with the aim of arriving at an agreement under which GrainCorp’s board of directors would recommend to its shareholders a cash acquisition by ADM. Any agreement would be subject to satisfactory due diligence, regulatory approvals and other conditions.
“Our investment in GrainCorp is part of our ongoing portfolio management and is consistent with our strategy of growing our Agricultural Services and Oilseeds businesses by investing in key supply regions outside the U.S.,” said ADM Chairman and Chief Executive Officer Patricia Woertz.  “GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia’s farmers with growing global demand for crops and food, particularly in Asia and the Middle East.
“We anticipate that an ADM acquisition of GrainCorp would meet ADM’s key financial hurdles.”
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