MOSCOW (MRC) -- South Korea’s LG Chem has completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider, according to TPS.
Following a series of negotiations since September 2015, LG Chem has finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).
LG Chem, South Korea’s leading producer of basic materials and chemicals, has been keen on expanding into agrochemical business in order to diversify its business portfolio amid gloomy outlook for the country’s petrochemical industry.
Dongbu Farm Hannong is the country’s largest producer for crop protection products and the second largest manufacturer of fertilizers in South Korea.
"The world’s top chemical companies have been fostering agrochemical business as the key industry for future growth. Therefore, we expect that the acquisition of Dongbu Farm Hannong will boost our global competitiveness," said Park Jin Soo, Chief Executive Officer (CEO) of LG Chem.
As MRC wrote before, LG Chem shut down its polyvinyl chloride (PVC) plant for a maintenance turnaround in mid-October 2015. It remained shut till end-October 2015. Located in Daesan, South Korea, the PVC plant has a production capacity of 240,000 mt/year.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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