China National Chemical Corp., ChemChina, to Buy Stakes in Adama

China: Adama Agricultural Solutions Ltd. is a major producer and distributor of crop protection products. The company is 60% owned by China National Agrochemical Corp. which is a subsidiary of China National Chemical Corp. (ChemChina). Adama Agricultural Solutions Ltd.  is expected to merge with Sanonda, an agriculture chemicals producing company which is owned by ChemChina. This agreement of an international entity to combine with publicly traded company in China was possible after the consent of China Securities Regulatory Commission (CSRC). The shareholders of remaining 40% share of Adama Agricultural Solutions Ltd., Koor Industries Ltd., has agreed an agreement with China National Agrochemical Corp. to buy stakes in Adama for about USD230 million. The trading of Sanonda’s shares is expected to resume back by 4th August 2016, which was suspended from trading in August 2015. This merger activity is expected to complete by the first half of 2017. Post this agreement, Adama will run under its own brand name and management team.

TechSci Research depicts that the new entity formed by the merger of Adama & Sanonda would result in a symbiotic association for both the companies as it would broaden the product portfolio which would help the company in catering to the customer’s needs in more efficient and effective manner.

According to the recent report published by TechSci Research “Global Water Soluble Fertilizers Market By Type, By Composition (Straight and Complex), By Grade (NPK, NP, PK and Others), By Structure, By Application, By Crop, By Region, By Sales Channel, Competition Forecast and Opportunities, 2011-2021”, the global water soluble fertilizers market is projected to grow at a CAGR of over 5% during 2016-2021, on account of rising population, growing demand for food grains, and rising concerns related to depleting ground water resources. Water soluble fertilizers are also being extensively used in order to increase yield, as they are easy to apply and require less amount of fertilizers and water usage. Water soluble fertilizers dissolve faster, have a higher utilization rate and are absorbed quickly as compared to conventional chemical fertilizers.