May. 26, 2022
On May. 24, 2022, Sumitomo Chemical Co., Ltd. (“Sumitomo Chemical”) announced that it has decided to sell its entire shareholding in the Australian agricultural chemical company Nufarm Limited (“Nufarm”), representing 15.9% of Nufarm’s outstanding shares.
In 2010, Sumitomo Chemical acquired 20% of Nufarm’s outstanding shares and began a comprehensive business alliance with the company. The companies are currently generating major synergies in the development and sales of agricultural chemicals in over 30 countries around the world, and plans to continue their business alliance even after the dissolution of the capital relationship.
Sumitomo Chemical has positioned the crop protection business as one of its core businesses in the life sciences field, and has been expanding its global footprint in this area. In addition to the business alliance with Nufarm, in 2016 Sumitomo Chemical acquired a majority shareholding in an agricultural chemicals company in India, and in 2020 it acquired four subsidiaries of Nufarm in South America. For each of its strategic shareholdings in other companies, every year Sumitomo Chemical evaluates their medium- to long-term economic rationality and significance, and it determined the sale of its shareholding in Nufarm in accordance with this policy.