Decision on Graincorp acquisition extended to December 17 - Australian Treasurer
Joseph Hockey, the Treasurer for Australia, extended the deadline for regulators to give is foreign investment decision on Archer Daniels Midland Co's (ADM) acquisition of Australian grain handler GrainCorp Ltd. The decision to see whether buyout is in conflict with national interest would have to be made by December 17 of this year.
Hockey said, "Given the size of this transaction and the complex nature of the issues involved, I have decided to extend the statutory time period. This will allow sufficient time for the new government to carefully consider all the relevant issues and advice from the Foreign Investment Review Board before making a decision."
ADM would be acquiring Graincrop in a AUD3 billion ot USD2.8 billion deal. This deal would be the first for both Hockey and the Foreign Investment Review Board (FIRB) to make a foreign investment decision after the September 7 elections of the new conservative government of Australia. FIRB's role would be to look into foreign investments that go against the interest of the country. The final decision would ultimately be made by Hockey.
The new deadline would be consistent with the expectations of ADM to complete its acquisition, which is by the end of this year.