Australia’s Nufarm to sell S American assets to Sumitomo for $805m

Photo: meriç tuna/Unsplash

Australian crop protection company Nufarm Ltd said on Monday it would sell its crop protection and seed treatment assets in South America to Japan’s Sumitomo Chemical Co Ltd for A$1.19 billion ($804.80 million).

The divestment, including assets in Brazil, Argentina, Chile and Colombia, had been unanimously recommended by the Nufarm board and the firm would buy the $97.5 million preference securities issued to Sumitomo last month at deal completion.

Nufarm and Sumitomo will enter into a two-year supply agreement and transitional services agreement under which Nufarm will provide procurement services and the continued supply of certain products to the South American businesses.

Nufarm said it was confirmed as the preferred commercialisation partner for Sumitomo’s proprietary fungicides Pavecto and Indiflin in Germany, Poland and the UK.

Sumitomo did not immediately respond to Reuters’ emailed request for comment.

In a separate statement, Nufarm said its annual underlying net profit after tax dropped about 10% to A$89.1 million, due mainly to the impact of a full year of depreciation and amortisation relating to acquired European portfolios.

The pesticides and crop seeds producer said the performance improvement programme in Australia was forecast to deliver increased earnings before interest, tax, depreciation and amortisation of between A$10 million and A$15 million in 2020.

It said, however, that the tight supply conditions experienced in 2019 for some technical ingredients sourced from China were expected to continue having a negative impact on the cost of goods during 2020.

Severe dry weather has threatened grain production across Australia’s east coast, prompting Nufarm to cut its 2019 annual earnings guidance in August, citing the drought as a major cause.

Reuters 

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.