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Monday / December 23. 2024
HomeInputsAgro chems – PesticidesADAMA acquires majority stake in Huifeng Bio Agriculture in China 

ADAMA acquires majority stake in Huifeng Bio Agriculture in China 

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Image source: PR Newswire

Following the completion of both Phases I and II, ADAMA now owns 51 per cent of the equity in both Dibai and ADAMA Huifeng (Jiangsu)

 

ADAMA Ltd. and Jiangsu Huifeng Bio Agriculture Co., Ltd recently reported that they have completed the second and final phase of their previously announced transaction. In this phase, ADAMA has closed the acquisition of a 51 per cent stake in Huifeng’s key crop protection synthesis and formulation facilities.

Transaction Overview:

  • Phase I: As previously announced, in December 2020; ADAMA acquired a 51 per cent stake in Shanghai Dibai Plant Protection Co., Ltd.
  • Phase II: In the transaction that has now been completed, ADAMA has acquired a 51 per cent stake in a recently established, created to incorporate Huifeng’s key crop protection synthesis and formulation facilities;
  • Closing of Phase II follows the satisfaction or waiver of the relevant Closing conditions, including the obtaining of the required regulatory and other corporate approvals as well as the resumption of production at Huifeng’s key production facilities;
  • The total cash consideration for both phases of the transaction is approximately RMB 1,224 million (approximately $192 million at the current exchange rate), of which:
  • RMB 306 million (approximately $48 million) has been paid in respect of Phase I;
  • RMB 663 million (approximately $104 million) has been paid in respect of Phase II;
  • RMB 255 million (approximately $40 million) is being held back to secure the future post-Closing obligations of Huifeng.

Following the completion of both Phases I and II, ADAMA now owns 51 per cent of the equity in both Dibai and ADAMA Huifeng (Jiangsu), providing ADAMA with a majority stake in one of China’s leading crop protection manufacturers, and significantly bolstering ADAMA’s commercial presence in the China crop protection market. Through this transaction, ADAMA now gains access to backward-integrated and competitive positions in key global molecules, expected to drive significant growth through ADAMA’s worldwide market reach.

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