Sinochem prolongs assessment of Nufarm

Wednesday 2nd December 2009

Sinochem Corp., China’s largest chemicals trader, has prolonged its assessment of takeover target Nufarm, forcing Australia’s biggest farm chemical maker to extend the deadline for the A$2.8 billion deal.

Shares of Nufarm dropped 5.2% to A$10.66 on the ASX, valuing the company at A$2.5 billion. In September, Nufarm agreed to a non-binding proposal for Sinochem to acquire the company for A$13 per share. The December 3 deadline has now been extended to December 23.

Sinochem is “still assessing the results of its due diligence,” Nufarm said in a statement today. The Chinese company “remains very interested” in a deal and hasn’t suggested amending the price. Nufarm is “prepared to continue working with Sinochem” to try to reach agreement this month, it said.

Nufarm, whose range of chemicals includes the Roundup brand of herbicides, was originally approached by Sinochem in July. The approach was the second in as many years from a Chinese company after China National Chemical Corp., the nation’s biggest chemicals company, teamed up with US private equity firms Blackstone Group and Fox Paine Management in an unsuccessful proposal in 2007.

There is no certainty that a deal will be done, Nufarm said.

Businesswire.co.nz

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