VIC chemical manufacturer agrees $691m Europe portfolio

Melbourne chemical manufacturer Nufarm has agreed a deal worth $691 million for a portfolio of crop protection products in Europe.

The purchase will include herbicides, fungicides and insecticides sold in 29 countries across the continent.

Nufarm is also in discussions with another party to acquire a crop protection portfolio for less than $US100 million ($A128 million), according to The Australian.

“We will extend our reach into the European market via both a more significant position with existing distribution customers, and by accessing new customers,” said Nufarm’s managing director and CEO, Greg Hunt.

Nufarm has also signed a long-term extension to a series of collaboration agreements with a leading Japanese chemical company.

Since Sumitomo acquired a strategic investment in Nufarm in April 2010, the companies have worked together on a number of projects around distribution, development and manufacturing.

The extension to the collaboration agreements allows both companies to formalise arrangements for the development and distribution of a number of high-value tools focused on Sumitomo’s fungicide pipeline and combat major plant diseases.

The two companies have already agreed to develop mixture products targeting Asian Soybean Rust in Latin America, which costs farmers in Brazil more than US$2 billion (A$2.57 billion) to control annually.

“Nufarm is excited about this next chapter with Sumitomo Chemical, and leveraging the relative strengths of both companies to enable Nufarm to deliver on its strategic objectives.”