By Amanda Brodhagen, Farms.com
Archer-Daniels-Midland Co. (ADM) announces on Monday that it plans to proceed with the purchase of Australian grain handler GrainCorp. Ltd. ADM said that it has completed successful due diligence and intends to make a cash offer of $3.4billion, to acquire outstanding common shares for $12.20 a share. Chairman and Chief Executive Officer Patricia Woertz said that the offer is believed to offer strong value for both companies, noting that the acquisition fits well with ADM’s growth strategy. The deal is subject to certain terms and conditions, but ADM has been told that the offer would be unanimously recommended by the GrainCorp board. Some of the conditions include – ADM receiving a minimum of 50.1% of GrainCorp shares. ADM already owns 19.8% of the shares.