By Rob Taylor 
 

CANBERRA--U.S. agribusiness Archer Daniels Midland Co. (ADM) stepped up efforts to overcome political and grower opposition in Australia to its 3 billion Australian dollar (US$2.9 billion) bid for Australian grain handler GrainCorp Ltd. (GNC.AU), promising extra spending on rail infrastructure and price caps on access to silos and ports.

Australia's Foreign Investment Review Board, or FIRB, is due to decide by Dec. 17 on whether to approve the deal, impose conditions on it, or reject it altogether. As part of that watchdog review, Treasurer Joe Hockey will decide whether the deal is in Australia's national interest.

ADM said in a statement that it would offer an extra A$200 million to improve agricultural infrastructure to secure the deal, with specific emphasis on rail networks, promising price caps on grain handling fees at up-country silos and GrainCorp port facilities. Growers have expressed concern they could be hit by higher grain-handling fees if the ADM purchase gets the green light.

"Throughout our effort to secure approvals for our proposed acquisition of GrainCorp, we have worked constructively to create value for grain growers and the Australian economy as well as shareholders of GrainCorp and ADM," said Ian Pinner, ADM's grains chief. "We have had substantive discussions with growers, policymakers and other stakeholders."

Graincorp shares rose as much as 5% in Sydney trading following ADM's statement.

ADM also promised an "open access" regime for port services, as well as a grower and community consultation board in the three eastern seaboard states where GrainCorp has a near monopoly on the industry.

Trading houses have been pushing hard into Australia's grain sector since the breakup of the government's central exporting agency in 2008.

A deal for GrainCorp would see 60% of wheat shipments from Australia controlled by three companies--ADM, Glencore Xstrata PLC (GLEN.LN) and Cargill Inc. It would also put almost all of the country's export infrastructure under foreign ownership.

Write to Rob Taylor at rob.taylor@wsj.com

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