Nochi Dankner Finalizes Sale of Makhteshim

Published: December 28th 2010
in Economics » Israel

Nochi Dankner

The much discussed deal between Israel's Makhteshim-Agan Industries, one of the world's biggest manufacturers of generic pesticides, and China National Chemical Corporation seems all but done.


Nochi Dankner, Chairman of the board of directors of IDB, flew to China this week to finalize the terms of the sale of the pesticide maker. IDB Holdings Corporation Ltd. is a holding company which controls Makhteshim-Agan Industries through Koor Industries.


In November, Makhtashim reported that ChemChina has demanded a discount, which it has received. The parities had originally discussed a company value of $2.7 billion for Makhteshim, but ended the negotiations at a discounted value of $2.4 billion.


Makhteshim stock surged 6.8% yesterday due to the expected deal.


Following the closing of the sale, ChemChina will end up with a controlling stake of 60% of the shares. ChemChina is buying the 53% of Makhteshim held by the public for $1.3 billion and is paying Koor $168 million for another 7%. Koor will hold the remaining 40%. All the shares will be sold based on the $2.4 billion valuation.


This latest deal will go a long way in helping China expand in the agricultural chemicals market. ChemChina and Sinochem, both state-run companies, have each made failed bids for Australian agricultural chemicals group Nufarm. China has been very proactive in expanding their production and distribution capabilities in this sector through a purchase of an existing entity which would save them a lot of development time.

Related articles: (Nochi Dankner, Makhteshim, ChemChina, IDB)
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