29 Dec 2010 09:33

ChemChina eyes 60 pct stake in Israeli pesticide producer

Beijing. December 29. INTERFAX-CHINA - State-owned China National Chemical Corporation (ChemChina) a leading Chinese chemical producer, plans to acquire a 60 percent stake in Israeli pesticide producer Makhteshim Agan Industries (MA Industries) for $1.44 billion, MA Industries announced Dec.28.

According to the announcement, ChemChina and its subsidiary China National Agrochemical Corporation will pay $1.27 billion for an initial 53 percent stake in MA Industries currently held by public shareholders.

ChemChina will purchase another seven percent stake owned by MA Industries' parent company Koor Industries for $168 million.

As part of the deal, ChemChina will offer non-recourse loans totaling $960 million to Koor Industries.

The deal is set to be signed in the next two weeks and likely to be completed in the second or third quarter of 2011, pending approval from Chinese regulators and MA Industries' shareholders.

MA Industries is one of the world's largest producers of crop protectors such as pesticides and has factories in Israel, Brazil, Columbia, Spain and Greece.

Founded in 2004, ChemChina has net assets worth RMB 158.6 billion ($23.92 billion), according its Web site.

-Li Xin