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Kumiai Chemical Industry to Absorb Ihara Chemical Industry

Japan: Kumiai Chemical Industry Co., Ltd. and Ihara Chemical Industry Co., Ltd., two Japan based agricultural chemicals manufacturers, have entered into a business integration agreement. Both the companies are involved in the manufacturing and supply of agricultural chemicals. As per the deal, Ihara Chemical Industry, the absorbed company, would be responsible for the manufacturing of active ingredients and Kumiai Chemical Industry, the surviving company, would be handling commercialization and sales. The merger agreement is expected to be concluded by December, 2016 and May 1, 2017 is expected to be the effective date of the merger.

TechSci Research depicts that the symbiotic relationship between Kumiai Chemical Industry and Ihara Chemical Industry would benefit both the companies by strengthening their position in a rapidly changing environment of agriculture and agricultural chemical business in Japan. Moreover, the integration is anticipated to offer lucrative opportunities to both the companies maximize their corporate value. 

According to the recently published report by TechSci Research, “Global Water Soluble Fertilizers Market, Forecast and Opportunities, 2011-2021, the global market for water soluble fertilizers is projected to grow at a CAGR of more than 5% over the next five years, on account of growing demand for food grains, depleting water levels, shrinking availability of arable land, coupled with high efficiency and ease of usage of water soluble fertilizers as compared to conventional chemical fertilizers. Growing preference for water soluble fertilizers across the globe can be attributed to economical pricing of these fertilizers as compared to chemical fertilizers, coupled with requirement of low quantities of water and fertilizers while using water soluble fertilizers.

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