May 15, 2013 / 11:16 PM / 5 years ago

Australia's GrainCorp H1 falls on smaller crop, takeover costs

SYDNEY, May 16 (Reuters) - Australia’s GrainCorp, which is being taken over by U.S. agribusiness giant Archer Daniels Midland Co, posted an 11 percent fall in adjusted first-half profit on the back of a smaller grain harvest from Australia’s east coast.

GrainCorp, the largest bulk grain handler on the Australian east coast, said its net profit was A$109 million ($108 million) versus A$122 million a year ago. The figure did not include A$20.3 million in one-off charges, mostly costs associated with its response to the ADM takeover and its purchase of oil seeds businesses.

The earnings are GrainCorp’s first since accepting a A$3 billion takeover offer from Archer Daniels Midland Co in April.

ADM said on May 2 that it had completed its due diligence and would proceed with the deal, though both companies expect regulatory approval delays. The offer price included an extra payment for shareholders from October to reflect an expected delay in approval from China’s Ministry of Commerce.

The ADM purchase of GrainCorp requires Chinese regulatory approval because of the Australian grain handler’s ownership of the bulk liquid port terminal in Shanghai, China.

Wheat production during the current marketing year has got off to a slow start after dry weather delayed plantings in the world’s second-largest exporter.

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