Archer Daniels Midland Co. (ADM) has purchased an additional 10% economic interest in GrainCorp Ltd., for a total of 14.9% as of Oct. 18. ADM previously held economic interest in 4.9%.
ADM has approached GrainCorp with the aim of arriving at an agreement under which GrainCorp’s Board of Directors would recommend to its shareholders a cash acquisition by ADM. Any agreement would be subject to satisfactory due diligence, regulatory approvals, and other conditions.
“Our investment in GrainCorp is part of our ongoing portfolio management and is consistent with our strategy of growing our agricultural services and oilseeds businesses by investing in key supply regions outside the United States,” said ADM Chairman and CEO Patricia Woertz.
“GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia’s farmers with growing global demand for crops and food, particularly in Asia and the Middle East.”