AUSTRALIA – Syngenta, the global agribusiness company has announced that it has completed its divestment plans to sale a portfolio of Syngenta AG and Adama Agricultural Solutions Ltd crop protection products to Nufarm Limited.
Syngenta announced the bid to sale the portfolio for an agreed transaction valued at US$490 million in accordance with the commitments given to the European Commission (EC) relating to ChemChina’s acquisition of Syngenta, completed in May 2017.
According to Syngenta, the transaction which included a combined portfolio of off-patent crop protection formulations in the herbicides, fungicides, insecticides has since been progressing through the required regulatory approvals.
Following the requirements made by the EC, Syngenta embarked on a disposal process under the supervision of Duff & Phelps as the monitoring trustee, while Rabobank has been acting as the exclusive financial advisor to Syngenta in connection with this transaction.
At closing of the transaction, the Syngenta agreed to sell inventory to Nufarm, and no physical assets or personnel will be transferred as part of the transaction.
Under the terms of the commitment, completion of the transaction was subject to clearance by the relevant European Competition authorities, as well as qualification of Nufarm by the European Commission as a “suitable purchaser”.
“The transaction was carried out by the commitments given to the European Commission relating to ChemChina’s acquisition of Syngenta, which was completed in May 2017,” said a company statement.
Early 2017, American Vanguard Corp., through its principal operating subsidiary, AMVAC Chemical Corporation, a subsidiary of American Vanguard Corp, entered a definitive agreement to acquire certain U.S. assets from subsidiaries of Adama Agricultural Solutions Ltd., which is part of the China National Chemical Corporation.
The acquisition was part of an agreement between the Federal Trade Commission (FTC), ChemChina and Syngenta AG, under which ChemChina was required to divest these assets as a pre-condition for Syngenta AG acquisition.