DECATUR -- Archer Daniels Midland Co. said it is launching a tender offer to buy the rest of Australia's GrainCorp, after other bidders failed to submit better offers.
ADM last month offered 12.20 Australian dollars ($12.63) a share in cash for the remaining 80 percent of GrainCorp Ltd. that it doesn't already own, giving all of the Australian grain handler a value of 3.4 billion Australian dollars.
The agribusiness company based in Decatur, Ill., said late Sunday that GrainCorp's board has agreed to recommend the latest offer to shareholders for approval in the absence of a superior offer. Its two previous offers for GrainCorp had initially been rejected as too low.
GrainCorp offers grain storing, collection and transport. Archer Daniels said the deal will expand its agriculture offerings in the Middle East, Africa and Asia.
ADM has been looking to invest in overseas suppliers and Australia is a major exporter of commodities, including iron ore and wheat.
Its offer is scheduled to close on Aug. 31, unless extended, and is subject to conditions including regulatory approval.
ADM shares closed at $33.09 on Friday. They have ranged from $24.38 to $35.04 over the past year.