Archer Daniels Midland (NYSE: ADM ) has offered $12.13 per share to take over Australia's GrainCorp. The GrainCorp board is reviewing the proposal, according to a company press release.
The proposed deal is valued at around $2.77 billion.
ADM announced last Friday that it had increased its stake in GrainCorp to 14.9% and approached the company's board about recommending a cash acquisition to its shareholders.
GrainCorp confirmed in a news release Monday it did receive a non-binding offer from ADM for $11.75 (Australian) per share. That is $12.13 (U.S.) per share.
“Our investment in GrainCorp is part of our ongoing portfolio management and is consistent with our strategy of growing our Agricultural Services and Oilseeds businesses by investing in key supply regions outside the United States,” ADM Chairman and CEO Patricia Woertz is quoted as saying.