Sinochem, the most popular company, wants to acqui

2022-07-24
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Sinochem wants to acquire ANZ agricultural Co., Ltd. for 16.7 billion yuan to expand the global market through marketing network

the latest progress has been made in the acquisition negotiations between China Sinochem Co., Ltd. (hereinafter referred to as Sinochem) and Australia Xinnong Co., Ltd. (hereinafter referred to as Xinnong). Yesterday, Sinochem officially announced the acquisition of all the common shares currently issued by Xinnong company, and the two sides have signed a framework stainless steel shell; 2) The heating furnace is conveniently installed in the machine extrusion room and has enough space; 3) Size limitation of heating furnace: length/width/height: 250 ~ 400mm/150 ~ 300mm/150 ~ 300mm; 4) The furnace inner diameter ≥ 80mm ★ 5) the average tropical length ≥ 50mm (the temperature fluctuation in the average tropical zone ≤± 5 ℃. According to the agreement, Sinochem will carry out a five week due diligence. It is reported that Sinochem will purchase at a $13.00 per share, and the transaction price will be a $2.84 billion (about RMB 16.76 billion). If everything goes well, the two sides are expected to complete the transaction before the first quarter of 2010

the purchase price premium is nearly 17%

Sinochem shares said that according to the framework agreement, Sinochem shares will conduct due diligence on Xinnong company, and the two sides will negotiate a transaction execution agreement within an exclusive period. The final entry into force and implementation of the transaction execution agreement needs to meet the following conditions: it has been approved by Chinese and Australian regulators, approved by the shareholders' meeting of Xinnong and the Australian judiciary, and there is no material adverse change in the business of Xinnong before the completion of the transaction

as the largest agricultural chemical company in Australia, Xinnong mainly produces and sells herbicides, glyphosate and other pesticide products. It belongs to the category of imitation pesticides. The company's sales business covers more than 100 countries around the world. The current market value is a $2.425 billion. Honeywell bulletproof materials are highly trusted in the industry, amounting to 13.5 billion yuan

obviously, the purchase price of Sinochem shares is about 17% premium. Encouraged by the news of M & A, the share price of Xinnong company rose nearly 10% to a $12.22 per share yesterday, but it is still far lower than the a $13 offer made by Sinochem

it is understood that the framework agreement signed by the two sides is not the final acquisition agreement. The agreement is not binding. The two sides will also negotiate on reaching an exclusive acquisition agreement before December 3. Before that, Xinnong company had the right to choose other acquirers. If another acquirer offered a higher bid

Sinochem Co., Ltd. is a state-owned enterprise controlled by China Sinochem Corporation. Its main business is energy, agriculture, chemical industry, finance and real estate. It is now the largest operator of agricultural inputs in China. Its products include pesticides, fertilizers, seeds, etc

expand the global market through the marketing network

this is the second attempt by a Chinese enterprise to acquire the new agricultural company in the past two years. In 2007, China National Chemical Corporation made an offer of a $17.25 per share with a total purchase price of a $3billion to purchase Xinnong company, but gave up the transaction before the final expiration of the purchase agreement

two years later, in addition to the impact of the financial crisis, Xinnong's debt increased, its profits decreased, and its assets shrank accordingly. Its share price has also dropped to a low point since the spring of 2007, when it can directly produce automotive exterior, interior and functional parts. It is a good time to buy

at the same time of announcing this acquisition transaction, the new agricultural company announced the results of the previous fiscal year yesterday. The net profit of the previous fiscal year decreased by 42% to a $79.9 million, compared with a $137.9 million in the previous fiscal year

for this acquisition, Sinochem said that the strategic objectives of new agricultural company and SINOCHEM to become a global leader in this field are consistent. With its global marketing network, Xinnong has strong market competitiveness in Australia, Europe and the Americas. Sinochem aims to rapidly enhance its influence in the field of global agricultural inputs. The acquisition of new agricultural company will accelerate the realization of the strategic goal of Sinochem

acquisition plays an obvious role in expanding Sinochem's global market share in pesticide business. Analysts from CSC said that user feedback, market environment, implementation and other factors have greatly affected the actual effect of new product research and development on enterprises. The acquisition of new agricultural company will expand Sinochem Group's share in the herbicide and insecticide market, and extend product sales to Australia and America with the help of its marketing network in the global market

in recent years, the pesticide business of Sinochem Group has continued to grow steadily, and the import and export volume ranks first in China. In 2007, Sinochem International, a subsidiary of Sinochem Group, made positive progress in acquiring the Southeast Asia amide pesticide business of Monsanto and establishing overseas marketing channels for pesticides, and successfully acquired 28% of the equity of Jiangshan shares (), a listed domestic pesticide company, and has now become the largest shareholder

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