Stock Market Watch

Archer Daniels Midland – ADM – Acquisition of GrainCorp

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NYSE: ADM) has held an economic interest in 14.9 percent of GrainCorp Limited (GNC) shares. ADM previously held economic interest in 4.9 percent, and on Thursday evening ADM acquired an additional 10 percent economic interest at a price of A$11.75 per share.

  • Intends to work with GrainCorp to arrive at acquisition agreement
  • Part of ongoing ADM portfolio management
  • Aligns with strategy of investing in key supply regions outside U.S.

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.”

“We anticipate that an ADM acquisition of GrainCorp would meet ADM’s key financial hurdles.”

About ADM – ADM

For more than a century, the people of Archer Daniels Midland Company (ADM) have transformed crops into products that serve vital needs. Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 270 processing plants, 420 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 160 countries.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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