Related News
Sinochem in bid for Australia's Nufarm
By Richard Fu |
September 29, 2009, Tuesday
|
Print Edition
Print Edition
SINOCHEM Corp, China's biggest chemicals trader, has made a A$2.8-billion (US$2.4 billion) offer to buy Australian farm chemicals maker Nufarm Ltd.
This marks China's second attempt to buy Nufarm in as many years, after China National Chemical Corp, or ChemChina, failed to launch a A$3 billion bid in December 2007.
Nufarm supplies pesticides and herbicides to farmers to protect crops and operates from Australia to Europe and the Americas.
Sinochem signed an initial accord to pay A$13 a share, Nufarm said yesterday. That's a 17-percent premium to its last traded price before the announcement. The news sent Nufarm shares up 7.36 percent at A$11.96 by yesterday's close, though the company said there was no certainty the agreement will be executed.
Unlike some other acquisition targets sought by China in Australia's resources sector, the Nufarm takeover is mainly aimed at boosting Sinochem's global presence, as China is not short of such products, Beijing Orient Agribusiness Consultant Ltd analyst Xu Hongzhi said.
The purchase will accelerate Sinochem's strategy to become a leading global player along the complete crop protection value chain, Sinochem said in a statement.
The deal needs the approval of regulators in China and Australia.
Sinochem is being advised by Royal Bank of Scotland, while UBS is advising Nufarm.
Nufarm reported a 2.6-percent drop in net profit, excluding one-time items, for the year ending July 31, but said earnings will improve in the current fiscal year.
This marks China's second attempt to buy Nufarm in as many years, after China National Chemical Corp, or ChemChina, failed to launch a A$3 billion bid in December 2007.
Nufarm supplies pesticides and herbicides to farmers to protect crops and operates from Australia to Europe and the Americas.
Sinochem signed an initial accord to pay A$13 a share, Nufarm said yesterday. That's a 17-percent premium to its last traded price before the announcement. The news sent Nufarm shares up 7.36 percent at A$11.96 by yesterday's close, though the company said there was no certainty the agreement will be executed.
Unlike some other acquisition targets sought by China in Australia's resources sector, the Nufarm takeover is mainly aimed at boosting Sinochem's global presence, as China is not short of such products, Beijing Orient Agribusiness Consultant Ltd analyst Xu Hongzhi said.
The purchase will accelerate Sinochem's strategy to become a leading global player along the complete crop protection value chain, Sinochem said in a statement.
The deal needs the approval of regulators in China and Australia.
Sinochem is being advised by Royal Bank of Scotland, while UBS is advising Nufarm.
Nufarm reported a 2.6-percent drop in net profit, excluding one-time items, for the year ending July 31, but said earnings will improve in the current fiscal year.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
