GrainCorp agrees to A$2.8bn ADM deal

Buying GrainCorp, the only major publicly traded grain merchant left in Australia after the nation deregulated its wheat-export system,tire changer would give US-based ADM control of seven of the eight ports that ship grain in bulk from the nation’s east coast as well as a substantial malt producer.carbon clothThe deal comes as the agricultural trading sector has experienced an unprecedented wave of consolidation over the past year and half,Air max tn with Glencore buying Toronto-listed Viterra for $6.1bn, and Marubeni acquiring Gavilon of the US for $5.3bn including debt. 
Last year ADM took a 19.9 per cent stake in GrainCorp, as it looked to diversify supply sources as US grain shipments fell short.In November, GrainCorp rejected ADM’s original offer of A$11.garage equipments75 per share, arguing the price did not reflect the value of its port and storage assets in Australia, the world’s second-biggest wheat exporter.In December GrainCorp rejected an increased A$2.8bn offer from ADM, saying it had “not changed the board’s view”.“GrainCorp’s board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of shareholders,” GrainCorp said at the time.GrainCorp is one of the few midsized international grain merchants left after a consolidation spree this year.Stone crusher The company handles 90 per cent of eastern Australia’s bulk grain exports through its storage and loading facilities.The acquisition of GrainCorp would be ADM’s biggest-ever deal.