Merger wave of domestic pesticide companies lift

Merger wave of domestic pesticide companies lift 

(Yan Yu to listen) 

In 2010, China's pesticide industry and competitive in national policies, under the dual pressures of the market downturn, showing a trend of mergers and acquisitions accelerated, ushered in the pesticide industry trend of mergers and acquisitions. Disadvantaged businesses in the industry trying to get through the difficulty through the corporate restructuring; and a strong business through capital operation and management of implanted quickly upgrade the production scale of enterprises, and enhance market competitiveness.

August 26 this year, the Ministry of Industry and Information Technology, Ministry of Environmental Protection, Ministry of Agriculture, General Administration of Quality Supervision, Inspection and Quarantine jointly issued the four departments of the "pesticide industry policy" requiring companies to vigorously promote mergers and acquisitions, increased industrial concentration; optimization of the industrial division of labor and cooperation, promoting the original drug company as a leader, establish and improve cooperation between the industrial chain. "Pesticide industry policy" explicitly, by 2015, 30% reduction in the number of pesticide companies, domestic pesticide top 20 enterprise groups to achieve the country's total sales of more than 50% of sales in 2020 reached 70%. Four departments in the "pesticide industry policy" in the speed with pesticides or chemical companies to the park gathering area of professional focus, reduce point source pollution. By 2015, strive to enter the chemical pesticide concentration area of the national pesticide companies to 50% of the total number of enterprises, more than 80% in 2020, pesticide companies in recent years, which will add another M & A boom of a fire. 

Policy implementation at the national pesticide industry, driven by the background of the recent, Zhejiang Xinan Chemical Industrial Group Co., Ltd. announced, the company invested no more than 80 million yuan transferee days of hi tech companies 75% of the equity, Xin Ningxia established technology, the company registered capital of 50.5 million yuan, is located in Ningxia Pingluo too Sha Industrial Zone, covers an area of 600 acres, with more than one pesticide product registration card, is carbendazim, diuron and other key manufacturers of pesticides. The acquisition will help Xin'an pesticide companies to enter new areas and expand and capitalize on regional advantages and its western development resources on developing the company's future development of new space, the layout of Eastern Europe has a positive meaning. October 29th, Fujian Agrotech Holdings Limited (Hollen Agriculture, 01,073) spent approximately 8,139.5 million (7,000 million yuan) in the acquisition of Fast Base Holdings Limited (a subsidiary of Jinan, Jinan, farmers and a Green Run) All options . Fast Base under the command of a farm in Jinan in China mainly engaged in the production and sale of a range of pesticides, 2010, 9 months, and its profit after tax was 101.8 million. Seller warrants, Jinan one year and the 2012 agricultural year 2011 consolidated profit after tax will reach 13 million yuan and 22 million yuan. Agricultural Hollen said the acquisition will help expand the revenue base and improving corporate profitability, increase their market share in the agricultural market and expects the acquisition will not affect the company's assets and liabilities of any significant adverse effects. Pesticide enterprises in Huizhou in the other dark horse was fast chemical performance is particularly eye-catching, breath in 2010 the company merged with Shaoyang, Hunan Biological Pharmaceutical Co., Ltd. Hong Cheng, Zhijiang pesticide plant, Ltd. Shandong Agricultural Jinnuo Shaanxi Tin Fu Tenda Crop Protection Sciences Ltd., Renshou pesticide factory six companies, a subsidiary of the arm has reached nearly 20, the product structure was further improved and enriched, the production base and further close to the target market, effectively reducing the product logistics cost and delivery time, further significant competitive advantage. 

In fact, some investment institutions in the dynamic trend of pesticide industry consolidation has seen a surge, all have added to the agricultural industry, capital operation, the most striking is that the domestic institutions Jiuding PE investment "five bursts" in the following Jiangsu Hui Feng agricultural, Guangxi Tianyuan Sheng of Jiangsu Limin Chemical Industry and Jiangsu in the flag of Chemistry, the 2010 investment in the domestic leading enterprises in Huizhou in the fast pesticide formulations Chemical Co., Ltd., the company's second-largest cash crop for domestic pesticides pharmaceutical enterprises. With the new generation of pesticides in a number of outstanding domestic enterprises to embark on capital markets and capital involved in the pesticide industry, the future strength and pace of industry consolidation will further increase, we have reason to believe that, in the near future, China's billions pesticide companies will no longer be a myth, similar to China's own Syngenta, Bayer, BASF pesticides that large multinational companies are just around the corner. 

Background information 

In addition to Xinan Chemical, Hollen and technology, fast chemical addition, many enterprises this year, mergers and restructuring are the big move. March 5, 2010, Knopp Investments 44,490,300 yuan, a wholly owned acquisition of Fujian Agricultural University is the new Biological Engineering Co., Ltd.. April 20, Hubei Yihua Chemical Industry Group and the Sin Lung signed Yihua Group 120 million yuan acquisition of 100% stake in Xian Long Chemical, officially entered the Sin Lung chemical. April 28, Montreal Chemie AG announced a major asset restructuring plan announced that the company intends to Agricultural Co., Ltd. Jiangsu capital increase as fast as 1.7 billion, subscribe to its agricultural Qantas 6,438.49 million shares of new issues , equivalent to 2.6404 yuan per share issue price. The capital increase is completed, Lear will hold a new chemical after the release of agricultural Qantas 51% of the total share capital, as its controlling shareholder, is conducive to the rapid development of large-scale. May, Qingdao Hailier British Pharmaceutical Sur wholly acquired biotechnology companies in Jiangxi, set up a Hartcourt Reiter Crop Science Co., Ltd., location and direction of customer service terminals, specialized focus on field crops, as the layout of the pesticide market in the South ready.