The bid also has now been cleared by the Australian Competition and Consumer Commission (ACCC) which said the move would “be unlikely to substantially lessen competition as the merged entity would continue to face competition from a number of sources”.
ADM lodged its third offer at the end of April 2013, after its first two were rejected by the Australian bulk grains specialist.
The offer is now in the hands of GrainCorp shareholders to accept. The bid will close on August 31 at 7pm Sydney time.
Public review process and expert analysis
The ACCC filed its decision after an extensive public review process involving consultation with grain growers, industry bodies and competitors about the likely impact of the proposed transaction.
GrainCorp’s board of directors made their recommendation after a report from independent financial expert Grant Samuel of Grant Samuel & Associates. Samuel concluded that the ADM offer was “fair and reasonable, in the absence of a superior proposal”.
ADM chairman and CEO Patricia Woertz reiterated that the offer is “highly attractive and in the best interests of shareholders”.
“We also believe ADM’s offer will deliver compelling benefits to Australian growers and the agricultural economy through access to new markets, investment in agriculture infrastructure, and its focus on serving the needs of Australian growers,” she added.