GrainCorp Rejects ADM Offer, Helix Energy Divests Subsidiary: Merger and Acquisitions Update

Late Wednesday, Australia’s GrainCorp turned down Archer Daniels Midland’s (NYSE:ADM) increased offer of $3 billion as insufficient. The former said in a statement that “The increase in the proposed price has not changed the board’s view that ADM’s proposal materially undervalues GrainCorp. GrainCorp’s board will be constructive in any dealings in relation to proposals that have the potential to be in the best interests of shareholders.” Shares of the rejected suitor dipped a small bit on Thursday.

Crude oil and condensate gathering assets of a subsidiary of Chesapeake Energy Corporation (NYSE:CHK) in the Eagle Ford area of South Texas were purchased by Plains All American Pipeline (NYSE:PAA) Thursday at a purchase price of around $125 million. The assets involved include 150,000 barrels of existing crude oil and condensate storage capacity; about 40 miles of crude oil/condensate gathering pipelines having a throughput capacity of roughly 50,000 barrels per day; 300,000 barrels of storage capacity that is  under construction and a truck unloading terminal.

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Rockland Immunochemicals purchases the TrueBlot IP/Western blot product line from eBioscience, a subsidiary of Affymetrix (NASDAQ:AFFX). The buyer is a biotechnology firm that concentrates upon antibodies and antibody-based tools for assay development, basic research, and preclinical studies.

Helix Energy Solutions Group (NYSE:HLX) will divest its oil and gas subsidiary Energy Resource Technology GOM toTalos Production, which is a wholly owned subsidiary of the privately-held Talos Energy, a Houston-based oil and gas company. The selling price is comprised of a base purchase price of $610 million along with contingent considerations.

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