Two major herbicide and seed companies are seeing interest from Chinese investors.
Dow AgroSciences enters into definitive agreements under which Nutrichem Co., Ltd., a supplier of agrochemicals in China, will purchase its oxyfluorfen business. The acquisition includes the global registrations, brands, manufacturing information and intellectual property relating to the oxyfluorfen herbicides, including all Goal herbicide brands.
Dow AgroSciences will be authorized to distribute Goal herbicide products made with oxyfluorfen supplied by Nutrichem on an on-going basis. The herbicide provides pre- and post-emergence control of a broad spectrum of weeds, and will be a good fit for Nutrichem’s existing manufacturing capabilities and expanding product portfolio while allowing Dow AgroSciences to continue to focus on innovative technologies for global agricultural markets, according to the two companies.
The transaction is expected to close by the end of 2015. Agreement and financial terms were not disclosed.
In related news, Bloomberg reports that Syngenta has rejected a $42 billion takeover offer by state-owned China National Chemical Corp. Citing unidentified sources, Bloomberg reports the Swiss-based Syngenta is still in talks with ChemChina and that a deal could be reached within weeks. Both Syngenta and ChemChina declined to comment.
