The Chuo City-headquartered group explained that the decision was a result of its policy of evaluating every year the medium- to long-term economic rationality and significance of its strategic shareholdings in other companies.
Despite the divestment, Sumitomo said the companies plan to continue their alliance that started more than 12 years ago, adding that they are “currently generating major synergies in the development and sales of agricultural chemicals in over 30 countries around the world.”
Sumitomo bought 20% of Nufarm’s outstanding shares in 2010, beating a rival bid by China’s Sinochem. The Japanese company has since been expanding its global footprint in crop protection, having identified the sector as one of its core businesses in the life sciences field. In 2016, it acquired a majority shareholding in Indian agricultural chemicals company Excel Crop Care and in 2020, it bought four Nufarm subsidiaries in South America.
Headquartered in Melbourne, Nufarm has more than 2,600 staff and posted revenue of AUD 3.2 billion for the fiscal year ended Sep. 30, 2021.
Author: Elaine Burridge, Freelance Journalist
