Sumitomo Chemical Company, Limited announced that it has agreed with Nufarm Ltd., the leading crop protection company in Australia, to acquire all shares of Nufarm’s four South American subsidiaries in Brazil, Argentina, Chile and Colombia, through Sumitomo Chemical’s fully owned subsidiaries in the region, i.e. Sumitomo Chemical Brazil for the Brazilian subsidiary, and Sumitomo Chemical Chile for the others. The acquisition is due to be completed upon approval by Nufarm’s shareholders’ meeting scheduled for December this year, subject to clearance by relevant regulatory authorities.
The crop protection market in South America currently accounts for approximately 25 percent of the world market, which is larger than North America or China. Among countries in the region, Brazil has the world’s largest crop protection market with a huge demand especially for soybean treatments. Argentina is one of the world’s leading
Against the backdrop of increasing global food demand, the crop protection market demand in the region is expected to grow further in the future. As a result of the acquisition announced this time, the crop protection revenue of Sumitomo Chemical in South America will triple, surpassing its revenue in North America. In addition, the Company can build a solid in-house sales system for crop protection chemicals in this region, which is the world’s largest market and is expected to grow.
More importantly, the acquisition will give a powerful impetus to the Company’s ongoing projects to establish a network of its global footprints.