U.S.-China Trade War Sparks Sumitomo-Nufarm Deal in South America

Sumitomo Chemical will buy the South American operations of Australian agrichemical maker Nufarm in a roughly 70 billion yen ($650 million) deal partly driven by the U.S.-China trade war, reports Hiromitsu Goto at Nikkei Asian Review. The move in soybean farm products, first reported by Nikkei, will expand the small South American footprint of one of the leading Japanese chemical groups, lifting the region above North America as the top contributor to revenue in the segment.

South America ranks as the world’s biggest agrichemicals market, and its exports of soybeans and other commodities have gained added prominence as an alternative for China to U.S. farm goods.

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