The deal gives FMC Corp. DuPont’s cereal herbicides business, making it the world’s fifth largest crop protection firm
FMC Corp. and DuPont are swapping assets in a deal that will give FMC DuPont’s cereal herbicides business and other agricultural assets.
The arrangement will move FMC, headquartered in Philadelphia, Pennsylvania, into the fifth place crop protection company globally, assessed by revenue.
DuPont wanted the sale to ease the competition concerns of the European Commission over the merger of DuPont and Dow.
FMC said it expects its deal with DuPont to be completed by the fourth quarter of this year.
In Western Canada, FMC will gain a significant market share with cereal products including the custom blending and packaging PrecisionPac — the big refrigerator-shaped distribution tool found at retail dealerships.
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DuPont also has products in broadleaf weed control in cereal crops with herbicides such as Refine, Triton, Barricade and Harmony, making it a big name in agriculture on the Prairies.
Under the deal, FMC will also get DuPont’s chewing insect pesticides and pay DuPont about US$1.2 billion in cash.
As part of the deal DuPont will acquire FMC’s nutrition and health portfolio.
In 2017, FMC expects the herbicide portion of the acquired business will generate about $1.5 billion in revenue and $475 million of EBITDA, now with total projected revenues of about $3.8 billion.
FMC will also get the staff, laboratories and research related to the newly obtained products, including the herbicides already in development.
The European Union cleared the giant $145 billion merger of Dow and DuPont on March 27, provided that the companies sell substantial parts of their business to meet the European Commission’s concerns about a lack of competition in the marketplace.
The merger is awaiting approval in other markets, including Canada and the United States and China.
DuPont said its merger with Dow, which was expected to close in the first half of 2017, is now anticipated to close between Aug. 1 and Sept. 1.
michael.raine@producer.com
