ChemChina plans to restructure its agchem assets

Recently Sanonda, a listed company of ChemChina, announced that Makhteshim-Agan Industries Ltd(MAI), ChemChina’s wholly-owned subsidiary, is planning a tender offer via its controlled Dutch company - Celsius Property B. V. to acquire part of Sanonda’s B Share.  

ChemChina is one of the Fortune 500, with its scope of business covering petroleum, chemicals, new materials and agrochemicals. ChemChina acquired 60% stake of Makhteshim-Agan which is an Israel Company at the cost of US$2.4 billion in 2011. Since the acquisition, ChemChina started to merge and restructure some of its state-owned agrochemical enterprises. Now ChemChina’s portfolio of agrochemical enterprise includes Makhteshim-Agan, Hubei Sanonda, Cangzhou Dahua, Shandong Dacheng, Jiangsu Anpon, Anhui Petrochemicals and Huaihe Chemicals.

 This acquisition sparks a speculation that ChemChina has the intention to restructure its agrochemical assets as well as business operations using Makhteshim-Agan as a platform.