BSM to acquire 20% of stakes in Ningbo Generic Chemical to promote overseas business deployment

Chinese agrochemical company BSM CHEMICAL CO.,LTD (BSM) made an announcement that it plans to spend RMB85 million (approximately 12 million USD) in cash in an acquisition of 20% of stakes in Ningbo Generic Chemical Co., Ltd (Ningbo Generic), aiming to further enhance the company’s global business ability and competitive strength in overseas market, via consolidation of the company’s advantage in pesticide manufacture and Ningbo Generic’s advantage in overseas market distribution.

With 16 overseas subsidiaries and five Hong Kong subsidiaries, the business activities of Ningbo Generic cover more than 70 countries and regions including South America, Central America, North America, Asia, Africa and Europe. Ningbo Generic takes independent registration as the entry point to have created a sales model which combines traditional export of pesticides with the strategy of independent registration, having established an overseas sales network under its own control. As of June 30, 2022, Ningbo Generic has 856 independent registrations owned or controlled in Argentina, Uruguay, Brazil, Colombia, Peru, most Central American countries, the European Union, Southeast Asia, Africa and other places; 435 pesticide product registration certificates are being applied for, and more than 4,000 GLP experimental reports can be used for overseas pesticide registration applications, providing sufficient support for the company's subsequent overseas registration layout.

BSM is the only pesticide enterprise in China that has the production and R&D capability of the whole industrial chain of pendimethalin techincal.  In recent years, the company's exports mainly focus on technicals, gradually deepen the cooperation with BASF, and actively promote the undertaking of BASF's production capacity of pendimethalin techincal. From January to June 2022, BSM’s operating income came primarily from pesticide intermediates, pendimethalin technical and formulations which accounted for 99.94% of the total.

According to the announcement, after completion of the acquisition, BSM will be able to utilize Ningbo Generic’s global pesticide registration capability and rich foreign trade business experience to effectively expand the promising overseas market; promote the international distribution of pesticides; and further enhance the core competitiveness of the listed company.