ChemChina Revises Deal To Buy Makhteshim Agan | January 10, 2011 Issue - Vol. 89 Issue 2 | Chemical & Engineering News
Volume 89 Issue 2 | p. 18 | Concentrates
Issue Date: January 10, 2011

ChemChina Revises Deal To Buy Makhteshim Agan

Department: Business
Keywords: agrochemicals, acquisitions, China

China National Chemical (ChemChina) has tentatively agreed to buy Israel’s Makhteshim Agan Industries in a newly negotiated deal with controlling shareholder Koor Industries. The latest pact, which values the generic agrochemicals maker at $2.4 billion, replaces one that Koor, an Israeli investment firm, negotiated in October at a value of $2.7 billion (C&EN, Oct. 18, 2010, page 6). Makhteshim has had a series of setbacks since the first deal was worked out, including a third-quarter loss of $56 million, a strike threat by Israeli workers, and the resignation of the firm’s chairman, Avraham Bigger. ChemChina asked to reopen negotiations in November. Under the new agreement, ChemChina will pay $1.4 billion to buy a 7% stake in Makhteshim from Koor and a 53% stake that is now held by public shareholders. Koor will retain the remaining 40% of the firm. As part of the transaction, ChemChina will also loan Koor $960 million. Koor hopes to close the revised deal by the third quarter of 2011.

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