GrainCorp agreed on Friday to a revised AU$3.0 billion (HK$23.3 billion or US$3.1 billion) bid from US-based Acher Daniels Midland Co, ceding control of Australia’s largest independent grains handler after a six-month courtship. China’s Ministry of Commerce (Mofcom) claims the power to review any merger in which the combined company would have $63m in Chinese sales and $1.5bn of world sales…Full-text articles: South China Morning Post Apr 2013 & BlackSeaGrain Apr 2013

Key points

  • Both ADM and GrainCorp have a presence in China, and therefore need approval from Mofcom (which could take many months and with added stipulations) before the acquisition can take place
  • In 2010, ADM purchased a US$100 million stake in the Agricultural Bank of China and has since seen little to no return on investment. However, there is speculation that the Agricultural Bank of China could help ADM receive relatively quick approval by China’s Mofcom

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