Australian MPs Aim to Stop ADM Takeover of GrainCrop

By Amanda Brodhagen, Farms.com

The bid to sell GrainCorp to U.S. giant Archer Daniels Midland (ADM) has some Australian MPs joining forces to stop the sale.

Several MPs including, Clive Palmer, Bob Katter, Andrew Wilkie and Adam Bandt announced on Tuesday, that they plan to put forward a private members bill to stop the sale of Australia’s largest agribusiness, GrainCorp.

The MPs say they want to stop the sale to prevent a foreign monopoly on Australian grain growers, arguing the sale could push down prices paid to Australian farmers. The MPs who oppose the sale also say the federal government should instead focus its priorities on improving the country’s grain infrastructure and form a single wheat desk.

Support for the deal appears to be mixed, with those in favor of the takeover arguing that blocking the bid would send the wrong message to international investors. This will be the Australian government’s first significant test on foreign investment, which will set a precedent on future bids. The bid has divided the coalition government, with the Nationals and a handful of rural Liberals opposing the sale.  

The block of MPs who plan to put a stop to the sale say if their bill is successful it would take away the power that Treasurer Joe Hockey has to approve the bid, and give it to the lower house. Under the country’s Florien Acquisitions and Takeovers Act, it’s the treasurer’s decision to approve or reject foreign takeovers like ADM’s proposal. ADM has offered $3.4 billion for the takeover. December 17 is said to be the deadline on making a decision on the bid.