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On 12th June, 2017, Limin Chemical Co., Ltd. (Limin Chemical) issued a notice that the company’s holding subsidiary Hebei Shuangji Chemical Co., Ltd. (Shuangji Chemical) had completed the industry and commerce change of registration procedures of equity transfer, marking the official completion of domestic fungicide (hereafter refers to mancozeb, maneb, metiram, zineb) industry's largest acquisition. On 6th June, Shuangji Chemical held the first shareholders meeting after the equity transfer and Limin Chemical chairman, general manager and some shareholders attended the meeting.
On 29th March, Limin Chemical and Shuangji Chemical signed an equity transfer agreement. Limin Chemical acquired 79.50% stake in Shuangji Chemical in cash of USD34.16 million. After the completion of the acquisition, Limin shares will have 40,000 t/a product capacity (like mancozeb, maneb, metiram, zineb) and complete the initial integration of domestic fungicides market. Gathering those domestic major manufacturers is good to consolidate the international market competition status with strength able to compete with others in the international market.
Picture 1: On 6th June, 2017, Shuangji Chemical held the first shareholders meeting after the equity transfer
Source: Limin Chemical
The completion of the acquisition is a win-win strategy of domestic fungicides manufacturers and has been supported by the local government of Xinji, where Shuangji Chemical is located. Li Minsheng, chairman of Limin Chemical, said that the cooperation of two sides not only can improve the international competitiveness of China's pesticide companies in the field of fungicides, breaking the original but competitive pattern gradually, but play an important role in promoting and demonstrating a way to avoid low level competition. After this acquisition, Hebei Shuangji, as the holding subsidiary of Limin shares, has entered a better development platform while Limin Chemical, on the other hand, can further consolidate the foundation of its development as well.
Sun Jiequan, the general manager of Limin Chemical, said that after this cooperation, Limin Chemical would increase the R & D investment of Mancozeb DF GR, Shuangji Chemical’s superior product, and set up R & D center in Xiongan new area, making Shuangji Chemical the largest base of Mancozeb DF GR in China and promoting the application of the prilling technology to other areas besides pesticide.
In addition, Limin Chemical will support Shuangji Chemical to launch its 10,000 t/a prilling and Zineb projects and seize the chance to promote products with mature technology and positive market prospects, occupying the market dominance.
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