Australia surprises with rejection of $2.55 billion GrainCorp takeover by ADM

Australia rejected the A$2.8 billion ($2.55 billion) takeover of GrainCorp (GNC.AX) by U.S. agribusiness giant Archer Daniels Midland (ADM) (ADM) on Friday, bowing to pressure from grain growers in a rare and surprising decision. The deal had been seen as the first test of the conservative government's vow that Australia was "open for business" after the victory of Tony Abbott's Liberal Party in elections in September. Treasurer Joe Hockey said he was rejecting the proposal on national interest grounds after Australia's Foreign Investment Review Board (FIRB) failed to reach a consensus recommendation. "Many industry participants, particularly growers in eastern Australia, have expressed concern that the proposed acquisition could reduce competition and impede growers' ability to access the grain storage, logistics and distribution network," Hockey told reporters in Sydney.

via Business News - Yahoo Finance http://finance.yahoo.com/news/australia-surprises-rejection-2-55-225920266.html