June 4, 2017 / 8:29 AM / 2 months ago

Adama says Chinese regulator approves merger with Sanonda

2 Min Read

JERUSALEM, June 4 (Reuters) - Israel's Adama Agricultural Solutions said on Sunday that a panel of the China Securities Regulatory Commission has approved its merger with Chinese agrochemical producer Sanonda, paving the way for the deal's completion.

China National Chemical Corp (ChemChina) controls Adama, the world's biggest producer of generic crop protection products, and is in the process of combing it with Sanonda , which is also a subsidiary of ChemChina.

Following the approval from the Chinese regulator, Adama said it expected the merger to be completed in the coming weeks.

"Adama's combination with Sanonda is expected to create, in one coordinated move, the only integrated global-China crop protection company, with combined 2016 sales of $3.35 billion," it said.

Last week, Adama said it had already received approval from a significant majority of Sanonda shareholders and was awaiting final approval from China's securities authority.

The combined company's pro-forma equity is valued at approximately $4.6 billion, placing its pro-forma enterprise value at approximately $5.7 billion, Adama said. It will continue to operate under the Adama brand and main operations will still be run out of Israel. (Reporting by Ari Rabinovitch; Editing by Steven Scheer)

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