Oct. 12, 2018
Recently Chinese agrochemical company Limin Chemical
announced that Limin Chemical, together with Xinrong Investment and others approved by Limin Chemical and Xinrong Investment, will make cash acquisition of 100% of stakes held by ENN in Hebei Veyong Biochemical
, Hebei Veyong Animal Pharmaceutical and Inner Mongolia New Veyong Biochemical. The underlying asset value for final closing is estimated to range between Yuan750 – 800 million.
Limin Chemical says that the acquisition is an important step of the company’s strategic business deployment to achieve the strategic objective of the company. The acquisition is of practical significance to the company’s rational business distribution, product portfolio enrichment and sales channel enhancement. It will further improve the sustainable development of the company, which will be supported by the complementary advantages of each company to be acquired. It is particularly helpful that via the acquisition Limin Chemical will be running on 3 business portions – fungicide, insecticide and herbicide, which will further reinforce its important role played in the industry.
The underlying assets are primarily engaged in production and marketing of pesticide and veterinary drug covering currently both APIs and formulations. The pesticide series of Veyong covers biopesticide represented by abamectin, herbicide represented by glufosinate and fungicide represented by azoxystrobin; veterinary drug of Veyong includes insectifuge and animal feed. The target company of acquisition is a prime abamectin producer in China, its abamectin, emamectin and ivermectin production technique is a world advanced technology. It takes the chairman’s seat in the Chinese Abamectin Product Collaborating Association. Inner Mongolia New Veyong Biochemical is located in Dalad, Erdos, Inner Mongolia, where the company have got the energy and resource advantages.
Limin Chemical has an annual 35,000-ton mancozeb production capacity as well as a number of leading EBDCs capacity, which rank the 1st in China in both the production capacity and production output. Hebei Shuangji is a share-controlled company of Limin Chemical, its capacity and output of leading products EBDCs, cymoxanil, fosetyl-aluminium, pyrimethanil and metham sodium all rank the first in China. Furthermore, Limin Chemical’s equity-participating company Jiangsu Xinhe Agrochemicals, where the company holds 34% equity shares, mainly produces chlorothalonil with a capacity of 20,000 tons per year, which ranks among the top players in China.