Syngenta and Adama Agricultural Solutions Ltd have entered into an agreement with Nufarm Limited to sell a portfolio of crop protection products for $490 million, as part of its commitments to the European Commission related to ChemChina’s takeover of the company.
The combined portfolio of products being divested includes off-patent crop protection formulations in the herbicides, fungicides, insecticides and other categories in the European Economic Area. No physical assets, apart from inventory, or personnel will be transferred as part of the transaction. Syngenta will also sell inventory to Nufarm at closing of the transaction, which is expected to occur in the first quarter of calendar year 2018.
According to an article in the Financial Review, Nufarm also said it was in exclusive discussions with another party to acquire a crop protection portfolio.
Completion of the transaction is subject to clearance by the relevant European Competition authorities, as well as qualification of Nufarm by the European Commission as a “suitable purchaser”, as stipulated under the commitments. The disposal process has been carried out under the supervision of Duff & Phelps in their role as the monitoring trustee to the European Commission.
Rabobank is acting as exclusive financial advisor to Syngenta in connection with this transaction.