Sumitomo Chemical India inks pact to acquire 85% stake in Barrix Agro Sciences

Sumitomo Chemical India (SCIL) has executed definitive agreements for acquiring 85% equity shares and a controlling stake (on a fully diluted basis) in Barrix Agro Sciences, a Bengaluru-based company engaged in the business of developing and providing farmers pheromone traps and chromatic sheets. It is also engaged in the business of bio-products and micronutrients. The transaction is subject to customary closing conditions and approvals.

The target company is in manufacturing and selling pest monitoring, trapping and crop nutrition solutions and research and development of pheromone-based products. Sumitomo Chemical India (SCIL), the acquirer company, is in the crop protection business. The acquisition will substantially enlarge SCIL’s product range including green chemistries in a larger measure. The acquisition is in alignment with SCIL’s strategy to build a more sustainable portfolio of green chemistries and offer Integrated Pest Management (IPM) and Integrated Plant Nutrition Management (IPNM) products and solutions to farmers. Through its established marketing and sales network of traditional channel and digital channels and available investment resources, SCIL will be able to provide guidance to the target company’s business to grow at a faster pace.

Sumitomo Chemical India was established in 1913 to manufacture fertilizers from sulfur dioxide emitted from smelting operations at the Besshi copper mine in Niihama, Ehime Prefecture, with the aim of solving environmental problems caused by emissions.

Today, the stock opened at Rs 434.45, with a high and low of Rs 446 and Rs 434.45, respectively. The stock is currently trading at Rs 444.75, up by 1.59%.

The stock has a 52-week high of Rs 540.65 and a 52-week low of Rs 382.50. The company has a ROCE of 30.2% and an ROE of 23.4% with a market capitalization of Rs 22,237 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.