AgroPages-Nufarm abandons its pursuit of Albaugh-Agricultural news

Nufarm is understood to have called off plans for a $US1 billion-plus takeover of US-based crop protection company Albaugh, according to The Australian’s report.

It is understood that Albaugh, which was on the block, is no longer for sale because it could not attract a high enough price.

Blackstone and Nufarm were both vying for the Iowa-based herbicide supplier.

Investment bank UBS was working for Nufarm while JPMorgan was selling Albaugh, the largest US-based manufacturer and formulator of off-patent agricultural crop protection products.

It comes as Nufarm ventures closer to entering exclusive talks to buy The Century Group from ChemChina for about $US200 million.

It is understood that Nufarm had been eager to secure Albaugh for $US1.1bn despite suggestions the business had a $US1.5bn asking price.

However, it remains in acquisition mode as various global opportunities present themselves.

In recent months, the focus for Nufarm has been the acquisition of ChemChina’s crop protection products and registrations for products in certain geographies.

Those products offered were held within ChemChina’s subsidiary Adama Agricultural Solutions, an Israeli crop protection business.

The products have been hived off under The Century Group name to sell off.

ChemChina is believed to be asking $US400m for The Century Group.

While Nufarm has been competing to buy the assets, so was Nufarm’s 23 per cent shareholder Sumitomo.

Sumitomo was suspected of being a seller of Nufarm last week. However, it is now known to be committed to retaining its Nufarm interest.

ChemChina is divesting the assets following its merger with Syngenta.

The EU has approved ChemChina’s $US43bn takeover of Switzerland-based Syngenta, but its assets are being prepared for sale to appease European regulators for the merger to proceed.