FMC and DuPont have inked a deal that will see FMC pick up the portion of DuPont’s crop protection business the EU says must be divested for the DuPont-Dow merger to go ahead.
In exchange DuPont will acquire FMC Health and Nutrition along with $1.2 billion (all figures U.S. funds) in cash.
FMC will acquire DuPont’s global chewing pest insecticide portfolio, its global cereal broadleaf herbicides, and a substantial portion of DuPont’s global crop protection R&D capabilities.
In 2017, FMC expects this acquired business will generate approximately $1.5 billion in revenue.
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After closing of the acquisition, FMC Agricultural Solutions will become the fifth largest crop protection chemical company in the world by revenue, with estimated annual revenue of approximately $3.8 billion.
“This is a significant step forward for FMC, and for our Agricultural Solutions business in particular,” said Pierre Brondeau, FMC president, CEO and chairman. “The combination of market-leading products from DuPont’s crop protection portfolio and its world-class R&D capabilities will transform our Agricultural Solutions business into a tier-one ag technology company.”
The acquired portion of DuPont’s crop protection business includes an industry-leading selective insecticide portfolio consisting of Rynaxypyr, Cyazypyr and Indoxacarb. The first two products have full patent protection over their respective active ingredients, and FMC expects them to generate over $1 billion in 2017 revenue. It also includes DuPont’s global cereal broadleaf herbicides, consisting of nine active ingredients and multiple formulated products.
