Adama Revisits Agchem Acquisition

Adama, the Israeli off-patent pesticides producer formerly known as Makhteshim Agan, aims to acquire Hubei Sanonda, a pesticide producer based in China. Financial terms were not disclosed. Both Adama and Sanonda are owned by ChemChina. The move is part of Adama’s long-term strategy to acquire a number of agchem businesses from its parent. Because Sanonda’s shares are traded on the Shenzhen Stock Exchange, the acquisition would enable Adama to also be listed on the exchange. Earlier this year, Adama postponed its goal to acquire businesses from its parent after plans to raise funds via an initial public offering on the New York Stock Exchange fell through because of adverse market conditions.