In a move that further demonstrates how agricultural companies have increasingly become takeover targets as a result of rising demand for food from emerging markets, ADM has offered $2.77 billion to acquire the business.
Reacting to the news, analysts believe the move signals ADM’s determination to break into fast growing Asian markets. Some however have been quick to point out that ADM could face competing bids for GrainCorp.
"Given the strategic value of the assets, and that this is the last remaining Australian grain company in public ownership, we believe there could be other interested parties, such as global grain companies or an Asian buyer," said Mark Wilson, from Deutsche Bank.
