The Australian government has rejected Archer Daniels Midland Co.'s bid to acquire grain handler GrainCorp Ltd, saying the proposed buyout would be contrary to the national interest.
ADM, which owns a nearly 20 percent stake in GrainCorp, offered to buy the remaining 80 percent interest in the company last year. A sweetened offer in May amounted to 12.20 Australian dollars ($12.63) a share in cash, giving all of GrainCorp a value of 3.4 billion Australian dollars.
In a statement, Australian Treasurer Joe Hockey concluded that it isn't the right time for a foreign company to acquire full ownership of an Australian grain business.
ADM management expressed disappointment in the decision.