Treasurer Joe Hockey has announced he will block the foreign takeover of the country’s largest agribusiness, GrainCorp Ltd.
Hockey has told press in Sydney this morning the decision to reject the $3.4 billion offer from US giant Archer Daniels Midland was reached after “long and careful” deliberations, reports The Sydney Morning Herald.
ADM’s offer for a full acquisition of GrainCorp was “contrary to the national interest,” according to Hockey.
Following the dismissal of the offer, the Treasurer confirmed he would allow ADM to increase its holding in GrainCorp from 19% to 24.9%.
Said to be one of the most complex cases to come in front of the Foreign Investment Review Board, it is the first of 130 significant foreign investment applications to be denied by the Abbott Government.
More to follow.
Business Insider Emails & Alerts
Site highlights each day to your inbox.