China's Sinochem approaches Nufarm with takeover offer
25 Jul 2009
Melbourne-based Nufarm which makes agricultural chemicals has been approached about a potential takeover by Chinese state-owned conglomerate Sinochem.
Nufarm said the Sinochem approach had come on a preliminary basis and though it was open to any offer or proposal there was no certainty as to any agreement that would be reached or any offer that would be put to shareholders.
Nufarm has been on the sights of several companies recently.
In 2007, China National Chemical or ChemChina had put in a bid at $17.25 a share that proved unsuccessful.
A week ago Deutsche Bank said in a company review that Sinochem would be interested in acquiring Nufarm for its technology, formulation agreements and distribution networks. Nufarm produces chemicals that help farmers protect their crops against damage caused by weeds, pests and disease. Deutsche said Nufarm would continue to be of interest to Chinese agricultural chemical companies.
Meanwhile, the company has said an assessment of the final impact on earnings of a decline in demand for glyphosate and competition in key markets for the herbicide would be carried out.
