Up-date on take-overs.
Much to everybody’s surprise, Treasurer Joe Hockey rejected
giant Archer Daniels Midlands
take-over bid for Australian grain trader Graincorp. US
Hockey declared that ADM’s $3.4 billion bid was contrary to the national interest.
Hockey copped a barrage of criticism over his decision from bodies such as the Business Council of Australia and the American Chamber of Commerce in
organisations are concerned about the message this decision sends to other
potential foreign investors. Australia
Hockey was quick to stress that “we are open for business. Of the more than 130 applications that have come over my desk since the election, only one has been declined and this is it.”
Warrnambool Cheese and Butter.
In mid-January, Bega, which was at one stage in the race for WCB sold its 18.8% share in WCB to the Canadian dairy giant Saputo, which is trying to take over WCB.
This gives Saputo a 45.25% share in WCB.
Murray Goulburn, the other contender for WCB is still waiting the outcome of an ACCC hearing into its bid for WCB.
There is speculation that Murray Goulburn will pull out of the race and sell its 17.5% share in WCB to Saputo.
Meanwhile, it has been announced that China Bright Food Co Ltd, will, through its Australian subsidiary company Manassen Foods, buy the Western Australian dairy processor Mundella Foods. Mundella produces cheese and yoghurt and has a small but valuable share of the market in WA.