Sinochem sets aside US$2.46 bln takeover for Nurfarm

Oct. 2, 2009 (China Knowledge) - State-owned Sinochem Group, a Chinese chemical giant, has agreed in principle to offer US$2.46 billion or A$2.84 billion for Nurfarm Ltd, an Australian chemical firm, according to a statement recently released by the Australian firm.

Sinochem plans to acquire Nurfarm at an average price of A$13 per share, nearly a 17% premium to Nurfarm's price on Sep. 25.

The deal is subject to approval from several regulators, including Australia's Foreign Investment Review Board.

Sinochem is being advised by Royal Bank of Scotland and Nufarm is being advised by UBS.

In 2007, Nufarm received an informal offer of A$3 billion from China National Chemical Corp, another state-owned chemical giant in China.

In fiscal year 2008, the Australian company's net profit fell 42% year on year from A$137.9 million to A$79.9 million, dragged down by the sluggish glyphosate business, which accounted for 31% of total sales, said Managing Director Doug Rathbone.