American food processing and trading firm Archer Daniels Midland Company (ADM) has sweetened its offer for Australian agricultural firm GrainCorp Ltd. ADM said it would add USD200 million for agricultural infrastructure projects in Australia, Business Spectator reported.
In addition, ADM also flagged price caps on grain handling fees at ports and silos. The firm committed improved infrastructure access for grain growers and third parties. Moreover, the company committed a move towards an "open access" system for port services, the report said.
GrainCorp company has been fiercely opposed by locals over the sale of Australia's biggest agricultural firm to a foreign company. Local growers, leaders of the National Party, and the junior partner in the Coalition opposed the takeover deal, the report stated.
ADM grain president Ian Pinner said of the additional commitments: "The additional capital investment that ADM will bring to GrainCorp represents a 100 percent increase in GrainCorp's original $250 million capital expenditure budget prior to ADM's proposal. Taken together, the capital investments ADM has committed to support or make for the GrainCorp business total $500 million."
Treasurer Joe Hockey is due to decide on ADM's proposed acquisition of GrainCorp on December 17. Meanwhile, GrainCorp shares increased from USD11.13 to USD11.73 on news of the sweetened bid, Business Spectator said.
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