EDITOR’S NOTE: Since posting this article, ChemChina and Syngenta announced that they have received approval from the US Federal Trade Commission (FTC) for the proposed acquisition of Syngenta by ChemChina. “This represents a major step towards the closing of the transaction, which is expected to take place in the second quarter of 2017,” according to a separate press release.
AMVAC Chemical Corporation today announced that it has agreed to buy Adama’s U.S. assets covering 3 crop protection product lines – abamectin, chlorothalonil and paraquat.
Adama Agricultural Solutions Ltd., is part of the China National Chemical Corporation (ChemChina) group, and the spinoff of those chemistries in the U.S. is a precondition for ChemChina’s proposed acquisition of Syngenta AG.
The divestiture of those chemistries was included in a consent agreement with the U.S. Federal Trade Commission. The sale would ensure that the ChemChina-Syngenta deal would not concentrate too much production of certain products in the hands of a single company limit price competition for those crop protection products.
AMVAC is buying trademarks, product registrations, registration data and commercial information that relate to the marketing and sale of the 3 products in the crop protection market within the United States.
The amount paid was not diluged.
“We are excited about the prospect of acquiring these product lines for crop use domestically,” said Eric Wintemute, Chairman and CEO of AMVAC’s parent company, American Vanguard. “For some time, we have been reporting that industry consolidation will result in acquisition opportunities, and this is exactly the kind of deal that we had been anticipating. We expect to give more color on this deal once the ChemChina-Syngenta merger closes.”