In a sign of China's growing scrutiny of global M&A deals, GrainCorp and ADM have tailored the deal to include an extra payment for shareholders from October to reflect an expected delay in approval from China's Ministry of Commerce.
"(Chinese approvals) tend to drag on longer than we would normally expect in the marketplace," Chairman Don Taylor told reporters, adding he expected the deal to close this year, but acknowledging it could take up to eight months.
Graincorp's board, which rejected two earlier offers from ADM during a six-month courtship, backed a revised A$13.20 a share deal that included A$1.00 a share in dividends, ceding control of Australia's largest independent grains handler.
The takeover is the latest move in the rapid consolidation of the global grains sector amid intense competition to feed fast-developing countries, and boosts ADM's international presence.
Read the full article
