CANBERRA, Australia (AP) - Australia has blocked the $3.1 billion (3.4 billion Australian dollar takeover bid of Australian grains handler GrainCorp Ltd. by U.S. food giant Archer Daniels Midland Co.

CANBERRA, Australia (AP) Australia has blocked the $3.1 billion (3.4 billion Australian dollar takeover bid of Australian grains handler GrainCorp Ltd. by U.S. food giant Archer Daniels Midland Co.

Treasurer Joe Hockey, invoking a rarely-used power to block foreign investment, said Friday he had rejected the 100 percent takeover of GrainCorp on the grounds that it would not be in the Australian national interest.

GrainCorp owns more than 280 grain storage sites, seven grain port terminals and handles 85 percent of eastern Australia's bulk grain exports.

The company based in Decatur, Illinois, owns 19.85 percent of GrainCorp. Hockey said he would allow Archer Daniels Midland to increase its stake to 24.9 percent.