US grain giant Archer Daniels Midland has increased its bid for Australia's last independent grain handler, GrainCorp. On Monday (3rd December), ADM offered Aus$2.8 billion (£1.8bn) in a renewed takeover bid, after GrainCorp refused an earlier bid of Aus$2.68 billion in November.

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GrainCorp advised the Australian Stock Exchange on Monday that "it [GrainCorp] received a revised indicative non-binding proposal from ADM stating that it is prepared to make a takeover offer to acquire the outstanding shares in GrainCorp at a price of Aus$12.20 per share in cash." ADM now holds 19.9 percent of GrainCorp shares, having acquired five percent more on Monday.

ADM, based in Illinois, is one of the world's largest food processing companies; the company is seeking to gain a foothold in Asia, where competitors Marubeni and Glencore have recently made acquisitions. GrainCorp's position as one of the largest grain handlers in the world's number two wheat exporting nation makes it a lucrative option for ADM, though there is still speculation over whether the Australian company will be incited by the renewed offer or reject the bid once more.

There are fears that the developing monopolies in the global region could see farm-gate prices artificially depressed and lead to engineered rises in food prices as a time when many countries will need to import more food.

Asia, where the transnational agribusinesses are consolidating their enterprises, is home to a number of the world's major net importers of grain. Officials in South Korea and Indonesia, two such countries, have warned that the 'grain majors' already account for around 75 percent of the global grain trade and that continued mergers risk creating unaccountable monopolies.

Speaking during November's unsuccessful takeover bid, Lee Gaus, vice president of International Futures Group said of the grain majors’ ambitions, "There are efficiencies that are gained when you have this kind of consolidation. But, on the other hand, there's a danger in a situation where you have more and more controlled by fewer and fewer. Ultimately this hurts the consumer. I don't know any time that you can concentrate so much leverage in so few hands that it doesn't eventually impact the consumer."

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