Sinochem Corp has entered into a Heads of Agreement with Nufarm in relation to a non-binding proposal for Sinochem to acquire all of the issued ordinary shares in Nufarm, by way of a scheme of arrangement.
The company said that the proposed acquisition of Nufarm is consistent with Sinochem’s strategy to become a leading global company in the total crop protection value chain including R&D, production, distribution and services.
The potential acquisition of Nufarm is likely to accelerate Sinochem’s ambitious global growth strategy in agricultural-inputs. The agreement provides for Sinochem to undertake a due diligence review of Nufarm and for the parties to work together on an exclusive basis to negotiate a Transaction Implementation Agreement (TIA).
Sinochem is controlled by Sinochem Group in Beijing, China. It is a state-owned enterprise with core businesses in energy, agriculture, chemicals, finance and real estate, and an integrated agriculture-input conglomerate (agricultural chemicals, fertilizer, crop protection and seeds).
Australia-based Nufarm is a generic crop protection company with a portfolio of products and brands, coupled with a global sales and marketing network with particular strength in Australia, Europe, and the Americas.