Nufarm seek farmers to be open to foreign competition

By Marc Castro

Sep 29, 2013 05:44 AM EDT

The largest supplier of farm chemicals in Australia, Nufarm Ltd advised farmers should welcome foreign investors to increase competition for their assets. According to Nufarm Managing Director Doug Rathbone, "It's a global business you cannot get away from that. If we close the gate to foreign investment, how do growers and farmers who want to transact their business get a fair price?"

These comments comes after the world's largest corn processor, Archer-Daniels-Midland Co., await the approval of a AUD2.2 billion or USD2 billion takeover of GrainCorp Ltd. The Decatur, IL based firm pegged the Australian firm's shares at AUD12.20 per share and this needs to be approved in both Australia and China. With the buyout, ADM would be in firm control of seven of the eight ports which ship gran from the eastern coast of Australia.

ADM had agreed to purchase GrainCorp in April to add a company that would benefit from the increased demand from Asia. The proposal underscores a push by companies which include Glencore International Plc and the Noble Group of Hong Kong to seek out agricultural assets with the aim of gaining headway from increased demand from Asia as well as the quality of life improves.

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