The competition regulator says it won’t oppose the $3 billion-plus takeover of Australia’s largest grain-handler GrainCorp by American food giant Archer Daniels Midland.

Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said the decision had been made after consultation with grain growers, industry bodies and competitors.

“The ACCC concluded that the proposed acquisition would be unlikely to substantially lessen competition as the merged entity would continue to face competition from a number of sources,” he said in a statement.

GrainCorp shares gained one cent, or 0.08 per cent, to $12.55 at 1029 AEST.

But the gain came as the overall Australian share market opened 0.89 per cent firmer.

Mr Sims said the ACCC examined whether the takeover would lessen competition, and if it would dilute competition between traders.

GrainCorp and ADM presently compete in grain trading and marketing in Victoria, NSW and Queensland, where GrainCorp competes with Toepfer, a company which ADM has an 80 per cent stake in.

The ACCC concluded that while GrainCorp has extensive interests in up-country storage and ports along Australia’s east coast, ADM doesn’t have any interest in storage and handling in these areas, with only a small interest in Queensland Bulk Terminals.

Mr Sims said ADM’s acquisition of GrainCorp would, therefore, be unlikely to affect storage and transport supply chains.

GrainCorp directors this week urged shareholders to accept the offer, under a deal where shareholders would receive $13.20 per share.

The Foreign Investment Review Board still has to approve the deal.