By Enda Curran
SYDNEY--Archer Daniels Midland Co.'s (ADM) 2.7 billion
Australian dollar (US$2.79 billion) bid for GrainCorp Ltd.
(GNC.AU), the world's second-largest wheat exporter, faces
significant opposition from shadow Treasurer Joe Hockey amid fierce
debate over the regulation of foreign investment into Australian
agriculture.
Mr. Hockey - an influential figure in the Liberal-National
coalition in opposition to the government - has "serious concerns"
and "misgivings" about the deal, which could see Australia's
largest remaining independent grains asset slip into foreign
ownership, according to a spokesman.
The spokesman didn't provided specific examples of Mr. Hockey's
concerns over the deal and a spokesperson for ADM declined to
comment.
The opposition's decision to oppose the Archer Daniel's bid
could pile pressure on the government to reject the offer.
Treasurer Wayne Swan earlier this year drew a wave of criticism
from some lawmakers after he approved the purchase of a giant
cotton farm, known as Cubbie Station, by a Chinese-led
consortium.
A spokesperson for Mr. Swan was unreachable for comment.
To be sure, direct foreign investment into Australian
agriculture is small. Agriculture, forestry and fishing makes up
only 0.1% of total foreign investment with 89% of land classified
as "entirely Australian owned," according to the government.
Blocking big deals in Australia is rare.
In 2011, Mr. Swan vetoed Singapore Exchange Ltd.'s proposed
takeover of main stock market operator ASX Ltd.
Still, criticism of foreign buying isn't unique to Australia.
Canada this month rejected the 5.18 billion Canadian dollar
(US$5.21 billion) takeover offer by Malaysia's state-controlled
energy giant for Canadian natural-gas producer Progress Energy
Resources Corp., in what was described as a surprise move that
clouded the country's approach to foreign investment.
Write to Enda Curran at enda.curran@wsj.com