Press release from PR Newswire
Makhteshim Agan and ChemChina Complete Merger
Monday, October 17, 2011
Makhteshim Agan and ChemChina Complete Merger04:29 EDT Monday, October 17, 2011Historic Transaction Realizes MAI's Vision to Create a Global Powerhouse in Crop Protection SolutionsTEL-AVIV, Israel, October 17, 2011 /PRNewswire/ --Makhteshim Agan Group (MAI) (formerly TASE:MAIN), the world leader in branded off-patent crop protection solutions, today announced that 60% of its shares have been acquired by China National Agrochemical Corporation, a full subsidiary of China National Chemical Corporation (ChemChina). ChemChina is one of the top 500 companies in the world and the largest chemical producer in China. The closing occurred following the satisfaction of several closing conditions, including approval of the transaction by MAI shareholders and European, US and Brazilian anti-trust authorities. As of today, MAI becomes a private company, 60% of which is owned by ChemChina, and 40% by Koor Industries Ltd., part of the largest Israeli holding company - IDB Group. The merger between MAI and ChemChina is the largest transaction ever concluded between a Chinese and an Israeli company, and represents a significant milestone in MAI's 66-year history. The transaction process was led by Mr. Ren Jianxin chairman of ChemChina and Mr. Nochi Dankner chairman of IDB Group. The merger will create a platform that is optimally suited to the changes in the global agrochemical industry, while positioning MAI to tap the opportunities inherent in these changes.Based on the desire of both shareholders, MAI's existing management team will continue to lead the Company, and its headquarters will remain in Israel. The Company intends to continue operating all of its existing global manufacturing facilities. In parallel, it will seek to capitalize on its strong base in China to further expand its global infrastructure and its ability to offer the industry's leading portfolio of crop protection solutions.Commenting on the news, Mr. Erez Vigodman, MAI's President & CEO, said, "The completion of our merger with ChemChina is first and foremost a vote of confidence in the people of MAI and of the strong platform we have created. It also represents a defining moment in MAI's evolution. The merger is an integral part of the transformation course that we have been carrying out, and will enable us to accelerate our momentum and strengthen our ability to provide effective, reliable solutions to farmers around the globe. The merger will serve as an engine for MAI's continued growth, securing its position as a major provider of market-driven off-patent crop protection solutions to farmers in more than 120 countries. In addition, it will give us a strong presence in markets throughout China and the entire Asia/Pacific region."Mr. Vigodman continued, "Going forward, we intend to combine the strengths, capabilities and assets of both ChemChina and MAI. China National Agrochemcial Corporation will support our efforts to address growers' needs and to simplify farming around the globe in a number of ways: by capitalizing on the great human capital we see in both companies, by leveraging our combined global resources, operational and logistical capabilities, and by taking full advantage of our shared passion for innovation and responsiveness to our customers. We will utilize our deep knowledge of agro markets, producing an expanded range of high quality crop protection solutions for farmers as they confront the formidable challenge of developing more food with scarcer resources. As such, our merger is a very positive development for our two companies, for our customers and for growers around the world."About Makhteshim Agan GroupMakhteshim Agan Industries Ltd is a leading manufacturer and distributor worldwide of crop-protection solutions and the largest off-patent player in the sector. The Company supplies efficient solutions to farmers that assist them in combating disease and increase yields. In 2010 the Company's sales revenues were over USD 2.37 billion, and it is ranked number 7 in the world agro-chemicals sector. The Company is characterized by its know-how, high-level technological-chemical abilities, expertise in product registration, and observance of strict standards of environmental protection, stringent quality control and global marketing and distribution channels. For more information visit us at http://www.ma-industries.com.Contact: Rony Patishi-Chillim Tel +972-73-232-1939 firstname.lastname@example.orgSOURCE Makhteshim Agan Industries LtdFor further information: .