ChemChina to buy Australia’s Nufarm for $2.8bn

05 November 2007 02:46  [Source: ICIS news]

SINGAPORE (ICIS news)--Australian agrochemical major Nufarm said on Monday that it has agreed to a Australian dollar (A$) 3bn ($2.8bn) takeover offer from a consortium led by China National Chemical Corp (ChemChina).

ChemChina, Blackstone and Fox Paine Management have offered A$17.25 in cash plus a dividend of up to A$0.30 per share, Nufarm said in a statement on its website, adding that it signed an exclusivity deed with the consortium.

The offer represented a 27% premium to Nufarm’s closing share price on 30 October 2007, the day before significant takeover speculation in its shares, it added.

“The transaction would combine Nufarm with certain agricultural chemical businesses of ChemChina to create the global leader in off-patent crop protection,” Nufarm said.

The consortium has also proposed that the Nufarm management team continue to manage the combined operations of the two companies and has indicated that retaining senior management and preserving the Nufarm business culture is an important element of the transaction, it added.

ChemChina’s agrochemicals unit is China’s largest pesticides producer.

Nufarm’s corporate headquarters would remain in Melbourne, the company said.
The acquisition marks ChemChina’s fourth overseas buy in the past few years which included Adisseo in France, Rhodia’s global silicones and sulphuric businesses and Australian cracker operator Qenos.

 ($1=A$1.08)


By: Florence Tan
+65 6780 4359



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