SYDNEY, April 26 (Reuters) - GrainCorp Ltd agreed on Friday to a revised A$3.0 billion ($3.1 billion) bid from U.S.-based Archer Daniels Midland Co, ceding control of Australia’s largest independent grains handler after a six-month courtship.
Under the latest offer, GrainCorp shareholders will receive A$12.20 per share, plus dividends totalling A$1 per share.
ADM has been pursuing GrainCorp since October, attracted by its dominant position on Australia’s east coast and the country’s access to Asian markets. In December, GrainCorp rejected ADM’s sweetened A$12.20 per share offer valuing the company at $2.9 billion.
“The GrainCorp Board believes that the ADM offer highlights the strategic value of our business and unique assets, the program of strategic initiatives being undertaken and GrainCorp’s enviable proximity to the fast growing Asian markets,” said GrainCorp Chairman, Don Taylor.
ADM is more focused in the United States than its rivals Cargill, Bunge and Louis Dreyfus.
GrainCorp operates seven of the eight bulk grain elevators in eastern Australia, handling as much as 60 percent of the region’s wheat, barley, canola, chickpea and sorghum crops.
GrainCorp has granted ADM a week to complete due diligence.