GrainCorp quashes ADM rumours

04 Nov, 2015 01:00 AM
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7
 
GrainCorp managing director Mark Palmquist.
I'm not paying any attention to what's being said
GrainCorp managing director Mark Palmquist.

IF the speculative chatter and rumours about Archer Daniels Midland's (ADM) future takeover ambitions in Australia are distracting the workforce at GrainCorp, nobody is admitting it, least of all managing director Mark Palmquist.

"It's not frustrating for me. I'm not paying any attention to what's being said," he told a company results briefing this week.

"It's there, but it's not affecting the way we're working at all.

"There's no impact on morale."

With the eastern Australian harvest well underway and dry seasonal conditions continuing to chew at the company grain receival and export earnings he said GrainCorp staff were busily tackling the various logistics and market challenges and opportunities ahead of them, rather than getting distracted by the media's interest in ADM.

The focus was on running GrainCorp so it could do the best possible job for growers during harvest, while also developing earnings diversification options in domestic and overseas markets to help its risk management strategies.

While some industry analysts and reporters have enthusiastically suggested new Prime Minister Malcolm Turnbull and Treasurer Scott Morrison would be more open to overturning the government's 2013 decision to block ADM's controversial takeover plan, Mr Palmquist said the only difference the recent leadership change had made to GrainCorp was to give the company new hope for a much-needed boost to rail infrastructure funding from Canberra.

Mr Palmquist said ADM had not talked with GrainCorp about making a new takeover bid or increasing its current 19.9 per cent share stake.

There had been no suggestion of any change in ADM's ownership intentions.

While GrainCorp management did hold occasional discussions with ADM management and other significant shareholders, the change in federal government leadership had prompted no talk of a second bid, as speculated in recent financial media reports, or any suggestion that ADM could soon quit GrainCorp's share register altogether.

"I don't have anything more to answer. There's nothing to say."

FarmOnline
Andrew Marshall

Andrew Marshall

is the national agribusiness writer for Fairfax Agricultural Media
Date: Newest first | Oldest first

READER COMMENTS

Jock Munro
4/11/2015 3:48:53 AM

The Nationals will not have changed their policy on the sale of Graincorp to ADM- Turnbull or no Turnbull,
aussiebattler
4/11/2015 5:18:47 PM

Don"t trust the National"s Jock,They were supportive of the Lima Declaration in 1975.That has done us wonders.
boris
5/11/2015 1:35:33 PM

The Nat's may have had the wood over Abbott but now its a different story. The sooner ADM has a supply chain presence in Australia the better placed we will be to serve the discerning Asian consumer.
michealsa
7/11/2015 6:10:53 PM

Graincorp?? They could be in South Australia sooner than people think watch this space.
Mark
18/12/2015 5:39:45 AM

Boris you are wrong! ADM already has a supply chain presence in Australia, where have you been? Graincorp lost touch with it's grower support base a long time ago and if the Boards had been doing the right thing for us it would have a lot more support but it was blinded by high flying Board members and poor CEO's and started to dig it's own grave against massive competition when they got their way Deregulating the Wheat market. Now they can not compete. If they were acting for the growers seeking out new markets for all grains and passing on better prices they would do better.
Deregul8
18/12/2015 9:06:39 AM

The big 4 know WA is the main game now. 20mmt production base not out of the question as feed grains take centre stage with domestic demand growing less than on the East Coast. CBH in its sights? I wish ...
Philip Downie
18/12/2015 9:12:02 AM

Boris how are they going to better serve the Asian customer? They will have the same wheat as Graincorp. So unless they are going to buy on variety and region and have the storage not much they can do.

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