ACCC won't oppose GRaincorp takeover
THE competition regulator will not oppose the takeover of Graincorp by United States oilseeds giant Archer Daniels Midland.
A statement from the Australian Competition Consumer Commission said the takeover was unlikely to "substantially lessen competition", due to likely continued existing competition.
The commission reviewed both the potential for the takeover to impact competition as well as impacts on growers, traders and other third parties.
Chairman Rod Sims said "It is unlikely that the incentives faced by ADM in regard to the storage and transport supply chain" would be materially altered.
"These arrangements have been very important in promoting a competitive bulk wheat export industry, and in allowing Australian grown wheat to be sold to a variety of international markets and buyers," Mr Sims said.
"In an environment where regulation may be moving to the use of a mandatory code, it will be important that policy makers ensure the regulatory settings are appropriate to ensure the right market outcomes in bulk wheat export, and that access to important bottleneck infrastructure continues to be effective."
The proposed takeover remains subject to approval by the Foreign Investment Review Board.