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Syngenta Group acquires 39.88% of Jiangsu Yangnong Chemical Groupqrcode

Nov. 13, 2020

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Nov. 13, 2020

On 7th November, Yangnong Chemical announced that Sinochem International and the Yangnong Group signed a framework agreement with Syngenta Group, with Sinochem International intending to acquire 39.88% of stakes in the Jiangsu Yangnong Chemical Group from the Syngenta Group. The Yangnong Group, the controlling shareholder of Yangnong Chemical, also plans to sell 36.17% of its shares in Yangnong Chemical to the Syngenta Group. 

After the transaction, the Syngenta Group will not hold any shares in the Yangnong Group, and Sinochem International will hold a 79.88% stake in the Yangnong Group. The Yangnong Group will not hold any shares in Yangnong Chemical, while Syngenta will hold a 36.17% stake in Yangnong Chemical, to become the controlling shareholder.

Previously, both the Sinochem Group and the ChemChina Group indirectly held shares in the Yangnong Group and Yangnong Chemical, and the proportion of shares held by the two companies was very close. Through this transaction, the Yangnong Group will be assigned to Sinochem International and Sinochem Group, while Yangnong Chemical now belongs to the Syngenta Group and the ChemChina Group.

Sinochem International is further increasing its shares in the Yangnong Group, making the Sinochem Group the actual controlling shareholder in Sinochem International. It will also increase its control of the Yangnong Group.

Sinochem International said that the transaction will increase its shareholdings of high-quality assets related to new chemical materials and key intermediates, which will further enable it to focus on new a material-based fine chemical business while allowing for the continued development of new chemical materials.

Syngenta will also become the controlling shareholder of Yangnong Chemical, which will separate from the Sinochem Group and shift to ChemChina Group. Yangnong Chemical has obvious business advantages in the pesticide industry, being the largest biomimetic pesticide manufacturer in China. Its pyrethroid pesticide output and income always ranks first among pesticide product varieties in China.

Moreover, Yangnong Chemical’s acquisition of Shenyang Sinochem Agrochemicals R&D Co., Ltd. and Sinochem Crop Care has enhanced its pesticide creation and imitation capability and expanded its pesticide product range, distribution channel and market volume in terms of pesticide formulation sales. The integration of research, production and marketing has increased the company’s operational capacity and competitiveness.  

Source: AgroNews

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