From the FT’s Lex column:
ADM, your turn might yet come. Less than a fortnight after the Australian government blocked the takeover of GrainCorp by US agribusiness group Archer Daniels Midland on shaky national interest grounds, Canberra has waived its demand for China’s Yanzhou Coal to sell down its holding in Yancoal, its local subsidiary.
…Joe Hockey, Australia’s treasurer, mentioned the industry’s problems in his decision to drop the demand that Yanzhou sell down from 78 per cent to 70 per cent. Yanzhou has pledged to back Yancoal, extend loans and support expansion. Yikes. No wonder Yanzhou’s shares fell 2.6 per cent, taking their year-to-date losses past two-fifths. Perhaps being limited to a 25 per cent holding is not the worst thing for ADM. It restated its commitment to Australia after its GrainCorp bid was rebuffed. If Yanzhou is anything to go by, ADM might only have to wait until attention and money has moved on.
They’re onto us!
