Graincorp Limited’s
(ASX:GNC) proposed takeover by US company Archer Daniels Midland is reportedly set to face delays following the likely scrutiny China’s Ministry of Commerce.
According to News Corp reports Graincorp manages an edible oils factory in China, with the Chinese ministry prone to taking interest in the reallocation of Chinese assets.
If the deal evolves into a formal bid, it will require approval from the Chinese before progressing further.
Archer Daniels recently lifted its offer from $2.68 to $2.78 billion, after the initial offer was rejected by Graincorp last month.
Graincorp generated a net profit of $133.7 million in its 2012 financial year.
