Australia grain merchant GrainCorp is considering a AUS$2.77 billion (£1.73 billion) offer from Archer Daniels Midland (ADM) to acquire the business.
US firm ADM already owns 14.9% of Australia’s largest grain merchant and the offer has been interpreted as an attempt by the world’s biggest processor of corn to drive growth in fast-growing Asian markets. Higher living standards and changing diets have increased demand for certain ingredients in many Asian countries.
“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,” Patricia Woertz, ADM’s chief executive told The Financial Times.
“Should GrainCorp receive a proposal from ADM, the board will review the proposal as well as other options to maximise value,” said a statement from GrainCorp.
The proposed acquisition would diversify ADM’s business – the firm currently earns 50% of its income from the US.
