ChemChina in Talks to Buy MA Industries
October 11, 2010
Reuters reports China National Chemical Corp is in talks to buy control of MA Industries. The deal would value the world''s No.7 agrichemicals maker at $2.7 billion, according to parent group Koor Industries. China is looking for opportunities to grow in the global agricultural chemicals market by buying up production and distribution capabilities. Koor said the two sides were discussing ChemChina taking 70 percent of MA, including 17 percent purchased from Koor, which would retain 30 percent. MA, also known by its former name, Makhteshim Agan, said separately it expected to post a 20 percent gain in third-quarter revenue but its net loss would widen due to higher tax expenses. MA said it could not say what that loss will be. A year ago, the company posted revenue of $436 million and a net loss of $17.5 million. MA also said it was restructuring its Brazil subsidiary, with a significant reduction in its head count and scale-down of its manufacturing operations.