The ACCC says it won’t oppose Archer Daniels Midland’s Graincorp Limited (ASX:GNC) takeover.
ACCC chairman Rod Sims says the acquisition would not substantially lessen competition because the new entity would continue to face competition from various sources.
Mr Sims says it is unlikely that the incentives faced by ADM in regard to the storage and transport supply chain will be altered by the deal.
The watchdog says it conducted an extensive public review process which involved consultation with grain growers, industry bodies and competitors about the likely effect of the proposed deal on competition.
The ACCC says it’s important to ensure access to bottleneck infrastructure where necessary.
Graincorp’s net profit narrowed to $88.2 million in the first half the 2013 financial year.
GNC Price at posting:
$12.57 Sentiment: None Disclosure: Held
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