Excel Crop Care to Merge with Sumitomo Chemical India
On August 1, 2018, the Board of Directors of Excel Crop Care Limited (ECCL) approved a scheme for its merger with Sumitomo Chemical India Private Limited (SCIPL).
SCIPL is a wholly-owned subsidiary of USD 20.6 bn Japanese chemical giant, Sumitomo Chemical Company, Limited (SCC). In October, 2016, SCC acquired controlling stake in ECCL from the Shroff Group. Both, ECCL and SCIPL are engaged in the agrichemicals business and are Indian subsidiaries of SCC. Thus the merger will not result in change of control of the company. Given similarity of businesses and high degree of complementarity, ECCL and SCIPL have made strategic decision to merge to usher in long-term benefits and achieve operational synergies and process efficiencies. Post-merger, SCIPL will convert itself into a Listed Public Limited company.
The process of merger is expected to complete, based on various approvals to be secured, in about 8-14 months. We will communicate to you about the same once the merger process is complete.
ECCL released the following statement:
“The merger will not make any change in so far as our customers and our business relations with them are concerned except that the name of our entity will change. Our business contracts with the customers and the terms of the contracts will remain unchanged. Many of our export customers hold product registrations for our products in their respective countries. Once the merger process is complete, name of the source in the ‘product registration certificate’ (which is currently ECCL) will need to be changed. We will write to the customers in due course of time for the same and will extend our full support and help for necessary procedures.
“We assure all our customers that the merger and the change in our entity name will make no difference in our cordial relationship with and support to our customers. We believe that the merger will help us serve our customers better and we will be able to offer them more new products.”