AgroPages-Red Sun completed acquisition of 60% stakes in Argentine Ruralco-Agricultural news

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Red Sun to acquire 60% stake in Ruralco, moving to market terminal

On the 29th January, Chinese agrochemical company Nanjing Red Sun announced the completion of acquisition of 60% stakes in Argentine Ruralco Soluciones S.A., as endorsed by the board of directors in the “Resolution for Acquisition of 60% Stakes in Ruralco.”

Red Sun’s announcement reveals:

Step 1: Red Sun will use its own fund of $8 million to acquire 26.6667% stakes in Ruralco, as being held jointly by Fernando Diego Gimbatti, Fernando José Filgueira, Jorge Alberto Cripovich, Enrique José Mezzadra and DionisioHéctor Reixac.

Step 2: Red Sun will contribute $15 million in kind in a manner of capital increase to Ruralco which acquires 33.3333% shares in Ruralco.

Upon completion of the above two steps, Red Sun will hold totally 60% stakes in Ruralco.

Ruralco was a joint venture launched between FMC and NewCo in 2011. It is FMC’s local distributor in Argentina engaged in distribution of agrochemicals covering herbicide, insecticide and fungicide, being also licensed to sell cereal, oilseed and feed crop. In 2016, the joint venture was terminated between FMC and NewCo. Ruralco has inherited from FMC thirty seven exclusive clients and is in possession of thirty three product registrations or registration authorizations.