MEMBER for Riverina Michael McCormack has hit out at a new deal which would see US company Archer Daniels Midland (ADM) take over GrainCorp.
Mr McCormack said he had written to Treasurer Wayne Swan asking that he reject the deal for the publicly listed grain exporter.
“I wrote to the Treasurer last week, urging him, in the national interest, to refuse any such deal,” Mr McCormack said.
“I have spoken to many farmers about this and they are worried about their future if the company’s strategic port facilities fall into overseas hands.”
Details of the takeover remained on ADM’s website yesterday, saying it intended to make a cash offer to acquire the outstanding common shares of the company, priced at $12.20 per share.
“We believe the offer delivers strong value for both companies’ shareholders,” ADM chief
executive officer, Patricia Woertz, said.
Despite much publicised concern, Ms Woertz said both companies were a good culture fit.
“We share similar values of integrity, excellence and safety, with strong commitments to people, communities, customers and sustainability.”
The deal is worth more than $3 billion and is currently being considered by the Foreign Investment Review Board (FIRB).
Mr McCormack said he believes the takeover will lead to an increase in handling charges for grain growers in the eastern states.
“We cannot allow this to simply be sold off,” he said.
“At the very least the Treasurer and FIRB must spell out exactly how this is in the best interests of Australia and our farmers.”