By Rob Taylor
SYDNEY--Australia blocked a 3.0 billion Australian dollar
(US$2.7 billion) bid by U.S. agribusiness Archer Daniels Midland
Co. (ADM) to buy grain handler GrainCorp. on grounds that is
against the country's national interest.
The move follows lobbying by farmers and some conservative
politicians against the deal, which would have seen 60% of wheat
shipments from Australia controlled by three companies--ADM,
Glencore Xstrata PLC (GLEN.LN) and Cargill Inc. It would also have
put almost all of the country's export infrastructure under foreign
ownership.
However, a decision to veto the deal also raises questions about
the commitment of the new center-right Liberal-National government
to welcome foreign investment, seen as critical to supporting a
slowing economy as a decadelong resources boom ends.
"I have made an order under the foreign acquisitons and
takeovers act prohibiting the proposed aquisition by ADM of
GrainCorp," Treasurer Joe Hockey said.
-Write to Rob Taylor at rob.taylor@wsj.com
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