Indian agrochemicals company UPL Ltd said it has entered into definitive agreements to acquire a majority stake in Yoloo Laoting Bio-technology Co. Ltd, an agrochemical firm based in China’s Heibei province, from Beijing Yoloo Bio-Technology Corp. Ltd.
The Mumbai-based company will own 75% stake in Yoloo Laoting for RMB 93.33 million (approximately $13.3 million or Rs 95.48 crore at current exchange rates). The remaining 25% shares will be held by Beijing Yoloo, UPL said in a statement.
As part of the transaction, UPL will also acquire Laoting Yoloo’s subsidiary, Anhui Yoloo Hexie Plant Protection Co. Ltd.
The acquisition, subject to various regulatory approvals in China, is expected to be completed by April next year. It will also require registration with the Market Supervision and Administration Bureau at Laoting County.
The acquisitions will help UPL strengthen its presence in China, which is one of the world’s major crop protection chemical markets. The company will also use the move to build on the relationships Laoting Yoloo has made in the segment by offering a wider portfolio of products.
Laoting Yoloo, which was incorporated in June 2015, is engaged in the business of manufacturing, distributing and commercialising crop protection products. It reported a turnover of $36.7 million (around Rs 263.27 crore at current rates) and $50.8 million (around Rs 364.42 crore at current rates) for the 2017 and 2018 financial years.
UPL manufactures and supplies crop protection and specialty chemicals worldwide. The multinational company says it is focussed on providing solutions to secure the world’s long-term food supply, according to its website.
Its solutions include specialty applications and one tailored for local needs, including crop protection and nutrition solutions, plant stress and stimulation, seed provisions, and soil and water technologies.
In June last year, reports said that UPL joined hands with sovereign wealth fund Abu Dhabi Investment Authority and other investors to acquire the agricultural pesticides business of NYSE-listed Platform Specialty Products Corp.