Feb. 7, 2019
Mitsui & Co., Ltd., ("Mitsui", Head Office: Tokyo; President and CEO: Tatsuo Yasunaga) and Ishihara Sangyo Kaisha Ltd., ("ISK", Head Office: Osaka; President and CEO: Kenichi Tanaka), have made the decision to jointly acquire 25% of shares of Ouro Fino Quimica Ltda ("Ourofino"), a Brazilian agrochemical company, and for this have signed a binding share purchase agreement with Ourofino (the closing of the transaction is subject to customary conditions precedent including antitrust approval), Mitsui agreeing to acquire 20% and ISK 5%.
Brazil is the world's largest market for crop protection products, accounting for approximately 20% of the global market. Population growth especially in developing countries has shown to be a key driver of growth in the agricultural inputs market (including agrochemicals, fertilizers, seeds etc.), and it is expected that the Brazilian market will continue benefitting from this trend in the future.
Ourofino started its operations in 2010 and has developed top-notch formulations that meet the demanding needs of Brazil's tropical climate. Through tireless efforts in gathering information on market needs and though its possession of sound expertise in developing outstanding formulations, Ourofino has successfully met the demand of Brazilian customers. Moreover, through continuous business expansions, Ourofino has substantially contributed to the improved performance of the Brazilian crop protection market.
By investing in this project, Mitsui and ISK intend to contribute to the expansion of Ourofino's business in Brazil by inducing synergy with Mitsui's assets around the world and by introducing ISK's competitive products into Ourofino's portfolio.
Mitsui has identified "Nutrition and Agriculture" as one of its key new growth areas in its Medium-term Management Plan. Mitsui has built trust-based relationships with its customers and partners around the world in the business of supplying agrochemicals, fertilizers, seeds, and other agricultural supplies that contribute to improving the productivity and quality of agricultural produce. Mitsui has significantly contributed to stable global food supply through its distribution platform in Europe (Mitsui AgriScience International (MASI) Europe, a fully-owned subsidiary) and its biologicals company in the USA (Certis USA, also a fully-owned subsidiary).
By this partnership, Mitsui will boost the synergy between Ourofino, ISK and Mitsui, accelerate the integration of operations, and contribute to the development of local agriculture in Brazil.