US & Australia: Sale of GrainCorp to ADM one step closer to completion

The sale of east coast grain handler GrainCorp to US food processor Archer Daniels Midland (ADM) is one step closer to completion after the company announced due diligence on the deal has been completed, ABC Online reported on March, 1.

After six months of rejected offers, GrainCorp directors have given their support for a deal worth more than A$3 billion which would see shareholders receive A$13.20 per share.

The deal still requires the approval from the Foreign Investment Review Board, the Competition and Consumer Commission and the Chinese Ministry of Commerce.

Chinese approval can be a lengthy process, with GrainCorp chairman Don Taylor estimating that the sale could take up to six months to complete.

The sale also requires the approval of 50.1 per cent of GrainCorp shareholders.

Shareholders will receive an additional dividend of 3.5 Australian cents per share for each month the sale process continues beyond October 1.

08 May, 2013