The rainfall pattern on east coast is expected to be affected by el nino in the next 1 - 2 years. However recent rainfalls on the east coast are suggesting this may not be quite as imminent as expected.
ADM have significant shareholding already: and are cashed up, but require asset/infrastructure.
Graincorp have the infrastructure assets but are cash poor
there are two camps seemingly taking position on the east coast
Graincorp/ADM v Cargill/Noble/Emerald (with Glencore as traders playing each other off)
Graincorp have the 'big' high capacity elevators/export facilities, with Newcastle/Port Kembla and Geelong having 250k storage capacity, plus the smaller facilities in Mackay, Brisbane and Portland.
The new facilities being out in place by the cargill/noble are smaller capacity 50k tonnes.
The ability of the graincorp facilities to store multi products is going to be very attractive to and suitor.
IMO the ADM takeover of Graincorp is matter of when, not if. Remember ADM had already offered around $12 per share. If the current SP gets over $10 then i believe that will be a sign that a new offer is certainly on the table.
Are ADM also buying up shares on market through an intermediary ? DYOR
GNC Price at posting:
$9.85 Sentiment: Hold Disclosure: Held
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