South African Regulator Approves Archer Daniels Midland Acquisition Of GrainCorp

(RTTNews) - US grain processor Archer Daniels Midland Co. (ADM), Thursday said the Competition Commission of South Africa has approved ADM's proposed acquisition of Australian grain handler and processor GrainCorp Ltd. (GRCLF, GNC.AX).

This brings the number of government agencies that have cleared the acquisition to four. Canada's Competition Bureau cleared the acquisition last week, and the Australian Competition and Consumer Commission did so in June. The United States Federal Trade Commission also approved the acquisition last November. ADM continues to work with regulators in Australia, China, the European Union, Japan and South Korea.

Decatur, Illinois-based Archer Daniels and GrainCorp signed a takeover implementation deed on April 25 for ADM to acquire GrainCorp for effective cash payment of $13.20 per share, including $12.20 cash per share and permitted dividends totaling $1.00 per share.

The offer price represents a 49 percent premium over GrainCorp's closing price of A$8.85 on October 18, the day of the last undisturbed share price before ADM first approached GrainCorp.