The Australian government has rejected Archer Daniels Midland Co.'s bid to acquire grain handler GrainCorp Ltd, saying the proposed buyout by 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.