Australia's agribusiness company CrainCorp said on Thursday that it had rejected a 2.6 billion AU dollar (2.69 billion US dollar) takeover offer from US agribusiness company Archer Daniels Midland (ADM).

GrainCorp said that the decision was made after its board reviewed and assessed the merits of the proposal from ADM.

ADM made an offer in October to acquire the outstanding shares in CrainCorp at a price of 11.75 AU dollars a share in cash.

"The GrainCorp board has determined that the proposal materially undervalues GrainCorp and has advised ADM accordingly," GrainCorp said in a statement on Thursday.

"The GrainCorp board remains committed to maximizing value for shareholders," it said.