Joe Hockey’s decision to disallow the acquisition of GrainCorp by ADM is in-line with what the agriculture industry believes is best for the country.
The vast majority of voters, who are member of the agricultural industry in Australia, were not in favour of US giant Archer Daniels Midland’s $3.4 billion takeover offer for GrainCorp, with 45.75 percent of respondents claiming ADM would have little regard for Australian producers, while 32.68 percent said GrainCorp’s monopoly is best kept in Australian hands. 14.38 percent didn’t have a strong view on the matter and just 4.58 percent supported the sale.
The same poll, posted on FatCow's sister site, www.foodmag.com.au which targets food and beverage manufacturing professionals, generated similar responses.
45.61 percent claimed that while GrainCorp has an almost monopoly control of the port grain terminals and storage on Australia’s east cost, it would be better to keep this in Australian hands; and 36.84 percent argued the sale would not be in the best interest of Australian growers.
Just 14.04 percent were in favour of the acquisition, stating that the sale is needed to grow Australia’s agriculture sector and allow it to become a global player, while 3.51 percent were indifferent.
Earlier today, Treasurer Joe Hockey ruled against the sale, arguing it was not in Australia’s best interests. He added, however, that he would allow ADM to increase its holding from 19.85 percent to up to 24.9 percent, upon further applications.