The Senate's Rural and Regional Affairs and Transport References Committee has recommended the ACCC reopen its informal review of Archer Daniels Midland's proposed acquisition of GrainCorp in its report on Ownership arrangements of grain handling.
The Committee's chair, NSW Senator Bill Heffernan, said the ACCC needs to take a closer look at the transaction, and in particular, the effect it would have on competition in Australia.
Archer Daniels Midland has acquired almost 26% of GrainCorp's shares (as of 20 August) after launching its $13.20 takeover offer in May. A condition precedent to the deal is a 50.1% shareholder acceptance, however the company has previously indicated that it wants full control. Following delays in obtaining FIRB approval, ADM has now extended its deadline to 7pm on 16 November.