Another loss for GrainCorp (GNC) yesterday, with CEO Alison Watkins leaving to take up the vacant CEO’s role at Coca Cola Amatil (CCL), one of the plum jobs of Australian business.
GrainCorp shares lost around 3.5% to $8.41, falling sharply in the afternoon and Coca Cola Amatil shares edged up a couple of cents to $12.11.
Last Friday the Federal Government blocked the $3.4 billion bid for GrainCorp from Archer Daniels Midland from the US and seeing GrainCorp shares fell 22% after the knock back, yesterday’s fall took the drop to more than 25% in two days.
In her statement yesterday Ms Watkins made it clear that she was going to leave the company had the ADM bid happened and been successful.
"I have carefully weighed my options over the past two days," Ms Watkins said in a statement.
"I had planned to leave the company at the time control passed over to ADM. Given last week’s unexpected developments, I feel it is in the best interests of GrainCorp, our people and customers that I move on now and allow the board to find new leadership to take the business forward into its new phase," she said.
She will leave the company by the end of next month.
While running GrainCorp, Ms Watkins has spent just on $1.5 billion on a series of acquisitions that have taken the company into the malt trade as well as the oilseeds and bulk liquids storage businesses, as she tried to offset the cyclical nature of the company’s traditional grains handling business on the Australian East Coast.
GrainCorp chairman Don Taylor will step in as executive chairman and take over as the acting CEO from mid-January, pending the appointment of a new CEO.
Mr Taylor said in yesterday’s statement that Mr Hockey’s decision had come as a surprise to the company and Ms Watkins’ departure was regrettable.
"It is with great regret that the board has accepted Alison’s resignation. However, we respect her decision to move on, particularly when a change of control in GrainCorp was broadly expected to occur over the coming weeks," he said.
The news also answers questions investors had of the Coca Cola Amatil board about who would replace the long time CEO Terry Davis. He is in place until August of this year after the board extended his term because it couldn’t find a replacement.
Ms Watkins will also step down from her role as a director of Australia and New Zealand Banking Group. She takes the reins at CCL in March.
Before joining GrainCorp, Ms Watkins was chief executive of juice maker Berri from 2002 to 2005, when it was taken over by National Foods (now owned by Kirin of Japan). She is also a former partner of consultants McKinsey & Company. She was formerly a non-executive director of Woolworths.
Coca Cola Amatil said Mr Davis will remain available for advice on special projects to Ms Watkins and the CCA board until the end of August 2014.
