FMC Corp. announced their acquisition of Cheminova A/S on Monday with the finalization and payment of $1.8 billion, including debts assumed.
Cheminova was originally owned by Auriga Industries, which is based in Denmark. Negotiations for the acquisition began in Sept. 2014. Cheminova boasts a wide array of chemical solutions and ingredients that are effective in crop protection. According to www.stockrants.com, it is a strategic move for FMC to acquire this company, with their complimentary products and technology along with strong growth potential in markets where Cheminova has a foothold, such as Europe and Latin America.
FMC's agriculture business is expected to receive boosted strength in this acquisition. With Cheminova technology and other items, FMC's offerings can expand for crop segments including grains and cereals.
Recently, FMC sold much of its business dealing with alkalai-based chemistry and its associated products; coupled with this investment, it can be expected that agriculture will be a primary focus for FMC moving forward. Cheminova has a robust selection of herbicide and insecticide products that are likely going to complement FMC's existing fungicides and bolster the corporation's offering of pesticides to growers and farmers.
The website also reports that stock prices increased by 0.8 percent in the first weekend after the closing of the acquisition.