Graincorp Limited - s.87B undertaking

On 21 May 2003, the ACCC approved the acquisition of Grainco Australia Ltd by GrainCorp Ltd. The ACCC considered the proposal on the basis that Grainco’s interest in the Australian Bulk Alliance (ABA) joint venture did not form part of the acquisition. ABA is a 50/50 joint venture between Grainco and Ausbulk Ltd which owns 10 up-country grain receival and storage facilities in NSW and Victoria, and a 50% share in the grain export terminal at the Port of Melbourne.

The ACCC held concerns that the proposed acquisition may contravene section 50 of the Act if it were to include Grainco Australia’s interest in ABA.

In order to resolve those concerns, on14 July 2003, the ACCC accepted a court-enforceable undertaking from GrainCorp. The undertaking provides for the divestiture by GrainCorp of Grainco’s interest in the ABA joint venture in the event that the sale of that interest is not completed by Grainco prior to the merger of the two companies.