Sinochem Makes $2.4 Billion Bid For Nufarm

Matt Hopkins Posted by Matt Hopkins|28 September 2009

Sinochem Corp., China’s biggest integrated agricultural company with fertilizer, pesticide and seed product, has offered to buy Victoria, Australia-based Nufarm for US$2.4 billion in China’s second attempt to takeover the farm chemicals producer, reports Business Week. In 2007, a consortium led by China National Chemical Corp., or ChemChina, launched a bid for Nufarm calculated at the time to be worth about $2.6 billion, but the plan fell apart before it could be completed.

Nufarm, which makes herbicides, fungicides and other chemicals used in farming, reported that it had entered into a nonbinding proposal for Sinochem to buy all of Nufarm’s shares for approximately $11.32 each, valuing the company at about $2.4 billion. On Sept. 28, 2009, Nufarm said its net profit for the year to July 31 had fallen 42% to $70 million.

Advertisement

The latest deal requires approval from Australia’s foreign investment review board and the government. Treasurer Wayne Swan has said he will only sign off on large foreign investment deals if they are in the national interest.

Hide picture