Shares in grains handler and marketer GrainCorp have fallen more than 25 per cent after Treasurer Joe Hockey blocked American food giant Archer Daniels Midland's $3.4 billion takeover bid.
GrainCorp shares, which closed at $11.20 on Thursday, were in a trading halt when the share market opened on Friday.
When they resumed trading at 1140 AEDT, GrainCorp shares opened at $8.26.
At 1142 AEDT, the shares were $2.93, or 26.16 per cent, lower at $8.27.
Mr Hockey said a takeover of GrainCorp would be against the national interest.
Mr Hockey said his decision on ADM's $3.4 billion offer for GrainCorp was reached after long and careful deliberations.
GrainCorp said it was extremely disappointed with Mr Hockey's decision.
"Today's events will have enduring implications that will be felt not only by our shareholders but by the entire industry," GrainCorp chairman Don Taylor said in a statement.
"Australian agriculture has been prevented from realising the potential benefits from the significant capital ADM would have invested in the long-term future of the industry."
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