To get the Israeli generic pesticide manufacturers Maxim a 70% stake in Forrest Gump, Forrest Gump China Chemical Industry Group is working with the parent company of Koor in talks, trying to use 462 million purchase from Koor at a 17% stake in Forrest Gump .
Forrest Gump The company has 47.75% of the shares in the Tel Aviv Stock Exchange, 47% of the shares held by the Koor through from the public, Koor, as well as the company's acquisition of Forrest Gump, China Chemical Industry Group intends to spend a total of 2.7 billion, will be Forrest Gump into private companies, and to achieve 70% of the holding, the remaining 30% stake still held by Koor.
China Chemical Industry Group is one of China's large central enterprises, in 140 countries and has production, R & D base, and a sound marketing network system, holding 10 A-share listed companies in the Fortune 100 global chemical companies ranked 19 bit, especially with production capacity of China's most powerful pesticides.
Forrest Gump is the world's largest generic pesticide manufacturer of herbicides, fungicides, insecticides and other agricultural products, glyphosate is one of its main products, the company was interested in buying the U.S. Albaugh company, but this fell through last month, later reduced by the credit rating of UBS
After the publication of the acquisition of interest, Forrest Gump companies and Koor's shares rose 28%, respectively, and 14%.
The negotiation is still in the preliminary stage, the deal is reached is uncertain terms of the acquisition have not released details, Maksim - Forrest Gump company news Seeing the disclosure of music, not only its share price rise inevitable, but also may lead to other bidders. But the company said the acquisition of local employees worried, because if the acquisition of success will be possible to transfer production facilities to China, making them lose their jobs, they want to buy the contract terms to ensure that they can write posts.
Link: Why China's chemical giants favor generic pesticide
Launched 3 years ago for the world's second largest generic manufacturer in Australia of new agricultural pesticide companies (NuFarm Limited, hereinafter referred to as the "new farmers") acquisition failed, and now, China National Chemical Corporation (the "China Chemical Industry") began launched for the world's largest manufacturer of generic pesticide Maxim Israel - Forrest Gump Company (Makhteshim Agan Industries, hereinafter referred to as "MA") of the acquisition. It is estimated that the acquisition cost may be 19 billion U.S. dollars.
Why China's chemical generic pesticide manufacturers have added so popular?
MA is the world's largest generic pesticide manufacturers, mainly producing herbicides, fungicides and insecticides and other agricultural products, from Maxim (Makhteshim) and Forrest Gump (Agan) two companies merged in 1998. After that through a series of acquisitions to achieve rapid growth.
China Chemical eager to "go out" the acquisition of generic pesticide companies, not out of energy companies like China, want to have more resources, but the needs of themselves and industry consolidation.
Original drug and the pesticide industry is divided into two major areas of preparation, which created the original drug can be classified as pesticides and generic pesticides. Currently, the field of pesticides has created a global "Big Six" (Bayer, Syngenta, Dow, BASF, Monsanto, DuPont), nearly 20 years has become the seeds and gene technology leader; and imitation Since 2000, the field of pesticides produced a so-called "four little dragons" (Israel MA, new rural Australia, India, the United phosphate, Nova Kemi, Denmark), gradually approaching the scale of "Big Six."
Guoxin Securities, according to the chemical industry, chief analyst at Credit Risk Management introduced in recent years, "Four Little Dragons" on the one hand continue to strengthen the R & D in new product areas, on the other hand in the global buying spree of local distributors, value chain into the downstream channels of high end. "This will be the development direction of China's pesticide industry."
China Chemical gone the other way on the premise that research-based multinational pesticide companies will continue to give up some of the old varieties, to the generic pesticide companies the opportunity to enrich the product line.
China's pesticide industry itself from, China also needed to integrate chemical. "The rapid growth of the pesticide industry has been in the past." CITIC Securities analyst Liang Bin building that growth came from the last round of agricultural prices, agricultural acreage has increased resistance to lead to increased drug use, pesticides and weed replacement agent promotion, but has a large area to promote the current herbicide, and new varieties of short-term pesticide is difficult to appear, under normal weather conditions, pesticides, growth in demand is limited.
Liang Bin, in the view, due to overcapacity, industry competition, mergers and acquisitions to accelerate, while the national increase pesticide registration fees and other reasons, the pesticide companies introduce new products more difficult to further increase the strength of industry consolidation.
Credit Risk Management that the next 5 to 10 years, will be China's prime-time integration of pesticide industry, pesticide giant imitation China will also appear.
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