Two Japanese-based ag chemical companies – Kumiai Chemical Industry Co., Ltd. and Ihara Chemical Industry Co., Ltd. – have entered into a business integration agreement. Both companies are involved in the manufacturing and supply of ag chemicals.
In the deal, Ihara will fold into Kumiai and manufacture active ingredients, while Kumiai would be handling commercialization and sales. The merger agreement is expected to be concluded by December, 2016 and May 1, 2017 is expected to be the effective date of the merger.
Cost reductions and gains in efficiency were cited as major reasons for the agreement.