Date: Sept 8, 2014
FMC has announced that it has entered into an agreement to acquire Cheminova, a wholly owned subsidiary of the Denmark-based company Auriga Industries, for $1.8 billion. The transaction, which is expected to close in early 2015, is subject to approval from Auriga’s shareholders and relevant competition authorities.
Cheminova, which was initially established in 1938, currently has a product portfolio of more than 60 active ingredients, as well as a pipeline of products currently under development. The company has more than 2,300 product registrations globally, with its products currently sold in more than 100 countries. Cheminova operates subsidiaries in 24 countries worldwide.
FMC expects this acquisition to significantly broaden its Agricultural Solutions business, expanding its product portfolio and improving its position in certain markets. Cheminova’s direct market access in Europe combined with a strong position in Latin America is expected to boost FMC’s presence in these regional markets.
In 2013, Cheminova’s agrochemical sales reached $1,101 million, an increase of 7.2% from the 2012 outcome. FMC’s sales in 2013 increased by 21.7% from 2012 to reach $2,146 million.
FMC also announced that it plans to pursue the sale of its Alkali Chemicals division, with the sale expected to be completed by mid-2015. FMC Lithium will be retained as a separate operating segment.
Source: P Mc Dougall