On October 17, the 60 percent acquisition of Israeli Makhteshim Agan Industries (MAI) by China National Agrochemical Corporation, a wholly-owned subsidiary of China National Chemical Corporation (ChemChina) was complete. Israeli Koor Industries Ltd. of IDB Group, the former largest shareholder of MAI holds 40 percent of the stake.
MAI is a leading agrochemical company with a 66-year history. Its products mainly include herbicides, pesticides, bactericides and plant growth regulators. It has the capacity to produce more than 120 varieties of bulk drugs and more than 800 kinds of preparations. It has almost 5,000 registered products and over 6,000 trademarks in 120 countries across the world. In 2010, it realized 2.362 billion dollars in sales income.
The total equity of MAI is worth 2.4 billion dollars. The amount of this acquisition is 1.44 billion dollars. A related agreement was signed on January 8, 2011. The acquisition has been approved by government and related institutions of the two countries and passed by the anti-monopoly reviews of the United States, Brazil and the European Union. The Export-Import Bank of China, the Bank of China and the China Construction Bank will provide financing and international payment services for this project.
ChemChina is included on the Fortune 500 list as China’s largest chemical company. China National Agrochemical Corporation is responsible for the agrochemical business block of ChemChina and is China’s largest agrochemical company.
ChemChina General Manager Ren Jianxin said: “We have a common cause and vision and have the ability to continuously strengthen our core business. We are dedicated to providing advanced technologies and solutions that will enable more, safer food to be distributed among the increasing global population. The established leading technologies, a sound marketing network, and excellent management and employee teams that MAI has in the agrochemical field will have a positive effect on the enterprise.
Compass Advisers Group, PWC, Simpson Thacher & Bartlett LLP, Israeli GKH Law Offices, ERM Group and McKinsey Company will act as intermediaries and advisors on this project.