Archer Daniels Midland Co. is closer to making a huge expansion into Australia with a possible deal for a grain handler there called GrainCorp.
Decatur, Ill.-based ADM has offered 12.20 Australian dollars ($12.54) to buy GrainCorp. That values GrainCorp at about $3.1 billion, including the portion of GrainCorp that ADM already owns.
The deal announced late Thursday says GrainCorp’s board has agreed to recommend the offer to shareholders for approval. ADM’s two previous offers for GrainCorp Ltd. were rejected for being too low.
ADM says it is examining GrainCorp’s books and will announce a final decision about the deal by end of its first-quarter earnings conference call, which has been delayed until Wednesday.
ADM has been looking to invest in overseas suppliers. Australia is a major exporter of commodities, including iron ore and wheat.