MARKETS SPECTATOR: Graincorp acquisition trigger

Archer Daniels Midland's impending takeover of Graincorp could be the beginning of a wave of consolidation in Australia's food sector.

GrainCorp’s acceptance of Archer Daniels Midland’s $13.20 a share offer ($12.20 plus a $1 dividend) today puts the US company in a dominant market position in Australian grain handling. GrainCorp manages 75 per cent of eastern Australia’s annual grain production and 90 per cent of eastern Australia’s bulk grain exports. It produces 35 per cent of Australia’s flour and 40 per cent of the country’s canola oil. Not a bad deal for Archer Daniels Midland, which if nothing else likes to dominate a market. Being a chief executive of an Australian food company now means it is likely an interested buyer will call.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles