Jiangsu Yangnong Chemical Co., Ltd. announced on the night of May 25th that Sinochem Group’s exemption application from the obligation of a forced offer of Yangnong Chemical’s 0.06% shares has been approved by China Securities Regulatory Commission (CSRC). After being transferred gratis 100,000 shares originally held by Jin Mao Group Co., Ltd., Sinochem Group now holds 40.59% of Yangnong Chemical’s total shares, becoming the de facto controlling shareholder of the company.
It is reported that before the share transfer, Sinochem Group was the second largest shareholder of Yangnong Chemical, only next to Yangzhou municipal SASAC, the actual controller of Yangnong Chemical then. Yangnong Chemical possesses a solid industrial base as well as excellent research and development strength. After being controlled by Sinochem Group, Yangnong Chemical’s industrial position will be further enhanced in the industry of fine chemicals as well as in the pesticide industry, while Yangnong Group will also bring Sinochem Group new business development areas and bring it an increasingly enhanced profitability.
In addition, Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., a leading enterprise of glyphosate production, is also a member of the Sinochem Group. It is understood that the state-owned chemical group Sinochem Group’s business now covers three core businesses, including energy, agricultural inputs and chemicals. Its indirect subsidiary Sinochem International currently holds 29.19% of Nantong Jiangshan Agrochemical & Chemicals’ total shares.
Yangnong Chemical and Nantong Jiangshan are two domestic listed companies engaged in the production of glyphosate. Some insiders revealed that Sinochem’s acquisition may indicate a large-scale integration of the glyphosate business.
