ADM Acquires Part Interest in Austrailian Grain Company

By CnAgri2012-10-22 19:58:51 Print

Archer Daniels Midland Company now holds an economic interest in 14.9 percent of GrainCorp Limited shares. ADM previously held economic interest in 4.9 percent, and on Thursday evening the company acquired an additional 10 percent economic interest at a price of $11.75 per share.

ADM says it 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.

"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 United States," said ADM Chairman and CEO Patricia Woertz.

Woertz says 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.