GrainCorp shares plummet, as Hockey denies ADM takeover bid; Business credit up in October: Midday Roundup

GrainCorp shares have lost 25% in early trade, as Treasurer Joe Hockey announced this morning he would block its foreign takeover.

Hockey told reporters he would oppose the takeover bid for GrainCorp by Archer Daniels Midlands to acquire 100% of Australia’s largest agribusiness.

GrainCorp shares were down 26.16% at $8.27 at 11.45am AEDT.

In a statement to the Australian Securities Exchange, GrainCorp chairman Don Taylor said Hockey’s decision will have “enduring implications” which will be felt throughout the entire industry.

“Australian agriculture has been prevented from realising the potential benefits from the significant capital ADM would have invested in the long term future of the industry,” he says.

“The Board remains confident in GrainCorp’s ability to continue to implement our long-term strategy, underpinned by our program of strategic growth initiatives and strong market fundamentals.”

Business credit up in October

Business credit lifted 0.1% October, rebounding from a 0.1% drop in September, according to the latest Reserve Bank figures.

Overall, credit growth in the private sector has risen by 0.3% in October, with credit up 3.5% for the year.

Business credit has grown 1.4% in the past 12 months.

Shares down on open

Aussie shares have fallen on open, following weak offshore leads as the United States celebrates Thanksgiving.

The S&P/ASX200 benchmark lost 16.1 points in early trade to 5318.2 at 12.12pm AEDT. Overnight the Dow Jones closed up 0.15%, increasing 24.53 points to 16,097.33.

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