Archer Daniels Midland Co's (ADM) takeover deal of GrainCorp overcame its first regulatory hurdle. This was after the Australian watchdog stated that it would not oppose the Aus$3 billion deal for the bulk grain handler by ADM.
On Thursday, the Australian Competition and Consumer Commission (ACCC) said that it would not reject or place conditions on the takeover offer. This was despite opposition from various Australian farm groups. The takeover is still pending approval from Chinese regulators.
According to analysts, the deal is expected to pass the ACCC.
ACCC Chairman Rod Sims stated in an email that commission concluded that the acquisition proposal would be unlikely to lessen competition as the merged entity would continue to face completion from other sources.
Archer Daniels Midland Co secured the deal for GrainCorp last April. However, signs showed that it would expect regulatory scrutiny. This led ADM to include an extra offer for shareholders from October to reflect any approval delay by China.
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