In Sep 2014, the news of FMC acquired Cheminova shocked global pesticide industry. After the merger, it's estimated that FMC may have the chance to shake the Six Giants' position in global pesticide industry. In fact, with the mergers and acquisitions performing globally, China pesticide manufacturers are also speeding up their pace of reorganization. As of press time, there are 18 pesticide manufacturers which have merged their pesticide production assets. The details are as follows:
1. Ganzhou Weinong Pesticide Co., Ltd. (TC manufacturer) merged Jiangxi Suifeng Pesticide Chemical Co., Ltd. (formulator), with registered capital 30.08 million RMB.
2. Anyang Quanfeng Biotech Group (TC manufacturer) merged Anyang Chemical Laboratory Plant (TC manufacturer), with registered capital 50 million RMB.
3. Hebei Shenghe Chemical Co., Ltd. (formulator) merged Chemical Plant of Hebei Normal University (TC manufacturer), with registered capital 5 million RMB.
4. Shenyang Chemical Institute (Nantong) Chemical Science & Technology Development Co., Ltd. (formulator) merged Jiangsu Huanong Seed Coating Agent Co., Ltd. (formulator), with registered capital 5.10 million RMB.
5. Shenyang Aiwei Technological Development Co., Ltd. (formulator) merged Shenyang Xingnong Chemical Co., Ltd. (formulator), with registered capital 5 million RMB.
6. Shanxi Guangda Chemical Co., Ltd. (formulator) merged Fujian Haolun Bio-engineering Technology Co., Ltd. (formulator), with registered capital 5.10 million RMB.
7. Zhangzhou longwen Agrochemical Co., Ltd. (formulator) merged Fujian Kefeng Pesticide Co., Ltd. (formulator), with registered capital 5 million RMB.
8. Qingdao Star Crop Science Co., Ltd. (formulator) merged Shaanxi Chuangxian Bio-chemical Co., Ltd. (formulator), with registered capital 30 million RMB.
9. Fujian Sino -dashing Bio-engineering Co., Ltd. (formulator) merged Sichuan Nuofuer Crop Science Co., Ltd. (formulator), with registered capital 11 million RMB.
In recent years, under the guidance of government policy, mergers and acquisitions in the pesticide industry have proceeded orderly. In 2013 twelve pesticide manufacturers merged their production assets and as of today in 2014, the number of merged manufacturers has reached eighteen. The momentum for merger and reorganization keeps growing.
Besides the above mergers of production assets, other business transfers and acquisitions of the Chinese pesticide industry in 2014 are listed as follows:
1. Xingfa Group has acquired 51% of Taisheng's shares, previously held by Jinfanda, and achieved absolute controlling stake in Taisheng Chemical, which further improves its phosphorus chemical industry chain
2. Huifeng Joint-Stock acquired 53.2% of Jialong Chemical's shares. As an important raw material for Huifeng Agrochemical's multiple products, Jialong's annual output of 20,000 tonnes of carbonyl chloride will optimize Huifeng's production level and expand its domestic sale market.
3. After taking gratuitous transferee of Jinmao Group's 100,000 shares, Sinochem Group actually became the new controller of Yangnong Chemical as it holds 40.59% of the shares of Yangnong Group, the controlling shareholder of Yangnong Chemical.
4. ADAMA made a full acquisition of CNAC's businesses in China, including Jiangsu Anpon, Jiangsu Maidao, Jiangsu Huaihe Chemical, and Sanonda Group.
5. Huapont Nutrichem invested the self-raised 220 million dollars in Albaugh in US, thus acquiring the companys 2500 voting shares and 22,500 non-voting shares. After the completion of the transactions, Huapont Nutrichem held 20% of the target company's voting shares and 20% non-voting shares.
6. Noposion invested 19 million RMB of its own fund in Zhejiang Mitsuo Seed and thus acquired 20% of Mitsuo's shares.
7. Xingfa Group acquired related assets of Hubei Yuerui Environmental Protection Technology's projects on treating saline wastewater from glyphosate production with 87.9147 million RMB.
8. Changqing Agrochemical acquired Nantong Fengtian Chemical's intangible assets with 7.19 million RMB.
9. Sinochem invested a total of 970 million RMB to acquire the entire equity of Sinochem Agrochemical, Shenyang Sciencreat Chemicals, Sinochem Agrochemical HK, Sinochem Agrochemical Brazil, and Sinochem Agrochemical Argentina.