Crop Protection China Monthly Report(Crop Protection China Monthly Report 202508)

In recent years, establishing large business groups by mergers and acquisitions (M&As) to expand production scale of enterprises has been one main guideline of the Chinese government for the pesticide industry. M&A has also become one of the key words in Chinese pesticide industry.

In an attempt to transform the small-and-scattered landscape of pesticide industry, China has been working on industrial structure optimisation by encouraging investment, merger and acquisition of pesticide enterprises to concentrate industrial resources to the top players and advance their collective, branding and international development with a whole-chain layout for production, meanwhile weeding out those of small scale and with weak competitiveness through raising the entry threshold.

International and domestic agrochemical enterprises' business transfers and acquisitions are becoming more frequent, thus forming a new industry giant pattern in which the resources and advantages are more concentrated and the strong will be stronger. In the 14th Five-year Plan period (2021–2025), a number of new pesticide policies and the environmental protection requirements have increased the environmental protection & safety pressure of pesticide production. A group of scattered, disorderly and small enterprises are eliminated. The survival of the fittest competition intensifies.

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