By Gillian Tan
SYDNEY--Archer Daniels Midland Co. (ADM) will find out whether
it has received approval from Australia's Foreign Investment Review
Board for its planned 3 billion Australian dollar (US$2.8 billion)
acquisition of GrainCorp Ltd. (GNC.AU) in about two months, the
nation's treasurer said Friday.
Joe Hockey, who oversees FIRB, said in a statement Friday that
he signed an order extending the time period in which a decision
would be made, setting a deadline of Dec. 17.
"The government welcomes foreign investment because of the
benefits that it provides to the Australian economy," Mr. Hockey
said in the statement. "Australia's foreign investment review
framework allows the government to examine foreign investment
applications on a case-by-case basis to ensure they are not
contrary to Australia's national interest."
He described GrainCorp, which has grain processing, storage,
transport and marketing operations across New South Wales, Victoria
and Queensland states, as a "significant Australian company."
GrainCorp shares closed Friday at A$12.35 a share, a 6.4%
discount to the A$13.20 that shareholders will receive under ADM's
offer.
The deal has already received clearance from regulators
including the Australian Competition and Consumer Commission and
the European Commission. The Ministry of Commerce of the Government
of the People's Republic of China, known as Mofcom, is yet to pass
its judgment on the deal. GrainCorp owns a bulk liquid port
terminal in Shanghai.
-Write to Gillian Tan at gillian.tan@wsj.com