Stepping up efforts to further expand its European crop protection business
Sumitomo Chemical has acquired all shares of Philagro Holding, (Philagro), its France-based consolidated subsidiary engaged in sales of crop protection products. In addition, Sumitomo Chemical is to acquire all shares of another of its consolidated subsidiary, the Spanish crop protection sales company Kenogard.
The company has reached a basic agreement with the other shareholders of Kenogard on the acquisition. The contract is expected to be concluded within the fiscal year 2024. Going forward, Sumitomo Chemical will step up efforts to further expand its crop protection business in Europe by more closely integrating operations of these sales companies as part of the Sumitomo Chemical Group while also exploring business reorganization and M&A opportunities in the region.
Both Philagro and Kenogard are sales companies that handle agricultural materials, primarily crop protection products, with Philagro focusing on France and Kenogard focusing on Spain as well as Portugal. Philagro was established in 1993 and later became a joint venture of Sumitomo Chemical, Nissan Chemical Corporation, and Nihon Nohyaku Co., Ltd. Kenogard was acquired by several Japanese companies, including Sumitomo Chemical, in 1992, and currently operates as a joint venture of Sumitomo Chemical and Nissan Chemical Corporation. Sumitomo Chemical has positioned these two sales companies as its key sales bases in France and Spain, two of the world’s leading agricultural countries.
Starting with the full acquisition of shares in the two sales companies, Sumitomo Chemical will accelerate its efforts to further enhance its footprint and product portfolio in Europe.
Specifically, the Company will integrate operations of Philagro with Sumitomo Chemical Agro Europe , its wholly owned subsidiary supervising the crop protection business in Europe, Middle East, and Africa, while also exploring business reorganization and M&A opportunities, to further expand its crop protection business in Europe.
At the same time, the company will strive to increase the synergies between its chemical crop protection business, including several potential blockbuster fungicides that are currently under development, and its biorationals business. The company has set a goal of more than doubling sales revenue from its crop protection-related businesses in Europe by 2030.
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