Adama‘s Shareholders Contemplating Combination of Adama with Chinese Sanonda
In 2014 ADAMA Agricultural Solutions (formerly Makhteshim Agan) and China National Agrochemical Corporation (CNAC), a strategic business unit of China National Chemical Corporation (ChemChina) and Adama’s parent company, signed an Adama to acquire control of businesses in China for approximately $850 million.
The acquisition was expected to raise the company’s revenues close to $4 billion and give the company a major foothold in the Chinese market. The deal was expects to close the transaction during the first half of 2015.
But today Adama announced that it is set to take over Hubei Sanonda Ltd., a Chinese crop protection manufacturer traded on the Shenzhen Stock Exchange. As part of the emerging deal between the companies, most of the shares in Sanonda, will be allocated to Adama’s current owners (ChemChina and IDB group subsidiary Discount Investment Corporation.