GrainCorp, Australia’s largest remaining listed agribusiness, has conditionally accepted US food giant Archer-Daniels-Midland’s $2.8 billion takeover offer, four months after rejecting the price as too low.

“We are pleased to have reached agreement with GrainCorp to conduct due diligence and, subject to that due diligence, put a recommended offer before GrainCorp’s shareholders,” ADM’s chief executive Patricia Woertz said in a statement.

Buying GrainCorp would give ADM control of seven of the eight ports that ship grain in bulk from Australia’s east coast, as well as a substantial malt producer.

‘‘They’re trying to do the best they can by existing shareholders and say that ’this is probably a reasonable offer’,’’ said PhillipCapital analyst Paul Jensz. ‘‘The market would be a bit surprised, but they’ve had a bit more time to think about it and apparently no other party has put in anything formal.’’

GrainCorp said in a statement to the ASX this morning that if the offer is successfully completed, shareholders would receive $13.20 per share, made up of a cash payment of $12.20 per share under the ADM offer and dividends totally $1 per share.

The company's shares last traded up 2.3 per cent at $11.87 on Wednesday. GrainCorp is expected to resume trading on the ASX at 11am this morning.

‘‘The dividends are expected to be fully franked, providing up to an additional $0.43 per share for those shareholders who can capture the full benefit from franking on the GrainCorp dividends,’’ GrainCorp said.

ADM bought a 19.85 per cent stake in the target company last year.

‘‘ADM and GrainCorp have complementary geographies with little overlap and highly compatible cultures,’’ Ms Woertz said. ‘‘The addition of GrainCorp to our global network would fit our strategy and help to further connect Australia’s growers with growing global demand for crops and food, particularly in Asia and the Middle East.’’

more to come

Bloomberg, with Glenda Kwek

Wait for it . . .some drone will come on and say "who cares"

Well I dam care!!!

what is happening with our business today???? didnt we used to buy out other companies??? now its all us being taken over what are we doing thats so wrong???? are we that inefficient????

A lot of it has to do with the high level of the dollar cods, which in turn has to do with the RBA keeping interest rates above the general world level.
Secondly our cost structure is too high. We know of course the effect the union system has in keeping wages high, now we have other pressures like the carbon tax & electricity.

cods wrote on Apr 26^th, 2013 at 11:12am:

what is happening with our business today???? didnt we used to buy out other companies??? now its all us being taken over what are we doing thats so wrong???? are we that inefficient????

we keep voting in rubbish governments with rubbish policies such as free trade etc. Add to that labor medaling with the FIRB and you have the wholesale sell off of Australia to the highest bidders :(

cods wrote on Apr 26^th, 2013 at 11:12am:

what is happening with our business today???? didnt we used to buy out other companies??? now its all us being taken over what are we doing thats so wrong???? are we that inefficient????

It's not just our business today, it's also our people today, who selling their homes (to foreign buyers), or can't even buy homes, living continuously on ever increasing rent (owned by foreign owners!!!) and now also electricity and other bills of vital needs. The unemployment is on the rise, but they go ahead and create another tax. Whats next - tax on TV? like they do it in europe? How can economy work like this? You get more disadvantaged Australians but Asia is continuing to grow, that's not much of a green deal is it?
Come on all you green nazis, carbon tax won't chAnge anything, the Asians will continue to overbreed and eventually turn this place into another big factory of exploiting slave labour and polluting the air, obviously china is not enough!