GrainCorp CEO resigns
GrainCorp chief executive Alison Watkins has resigned after the federal government blocked a proposed $3.4 billion foreign takeover of the grain handler.
In a statement, Ms Watkins said she had intended to leave the company after the planned takeover by US food giant Archer Daniels Midland (ADM), but Treasurer Joe Hockey’s decision to reject the move forced a change of plan.
“I have carefully weighed my options over the past two days,” Ms Watkins said.
“Given last week’s unexpected developments, I feel it is in the best interests of GrainCorp, our people and customers that I move on now and allow the board to find new leadership to take the business forward into its new phase,” she said.
Mr Hockey said on Friday that it was not in the national interest for the takeover to go ahead.
He said “now is not the right time” for the takeover because of the impact it would have on competition, and because it risked undermining public support for foreign investment.
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GrainCorp said Ms Watkins would leave the business in mid January to pursue a new opportunity with beverages supplier Coca-Cola Amatil (CCA) as group managing director.
Ms Watkins is expected to join CCA on March 3, 2014.
GrainCorp’s chairman, Don Taylor, will temporarily take on the role of executive chairman and will be appointed acting chief executive following Ms Watkins’ departure, while the company looks for a permanent replacement.
Mr Taylor said Mr Hockey’s decision had come as a surprise to the company and Ms Watkins’ departure was regrettable.
“It is with great regret that the board has accepted Alison’s resignation. However, we respect her decision to move on, particularly when a change of control in GrainCorp was broadly expected to occur over the coming weeks,” he said.
“The expectation in the investment community was that ADM’s offer for GrainCorp would be approved and effected in the near-term.”
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But, he said, the company was well-positioned for future growth.
“Despite the challenges of the past week, GrainCorp remains a great company, with exciting opportunities ahead,” he said.
In the US, the Obama administration said it was disappointed by the GrainCorp decision.
“We are disappointed by the government of Australia’s decision,” a State Department spokeswoman told the Australian Financial Review on Monday.
The US was the largest foreign direct investor in Australia, with $US132 billion ($145 billion) in investment projects to date, it said.
“We look forward to working closely with Australia’s government to build stronger trade and investment ties.”
Agriculture Minister Barnaby Joyce said the decision to block the takeover of GrainCorp would not damage trade relations with the US, despite the Obama administration’s disappointment.
A US State Department spokeswoman on Monday said the administration was disappointed by Treasurer Joe Hockey’s decision to block the $3.4 billion takeover for the grains handler by Archer Daniels Midland.
The US was the largest foreign direct investor in Australia, with $US132 billion ($145 billion) in investment projects to date, the spokeswoman said in a statement to the Australian Financial Review.
But Mr Joyce said Australia had to “look after our people first” and the United States would understand why the government stopped the buyout by the US agricultural giant.
“I don’t think it’s damaged trade relations with the US,” he told reporters in Canberra.
“You think of all the rejections the US government has made on foreign investment in their nation, and has that damaged where the US investments profile goes?”
The agriculture minister said “basically” every port along the United States coast was owned by US companies.
