The board of Sumitomo has approved a strategic investment in the Australian farm chemicals group Nufarm.
Nufarm says it will recommend that its shareholders accept the proposal by the Japanese chemical company to acquire a stake of up to 20% in the company for $A14 cash per share.
The ABC reports Sumitomo will have one seat on the Nufarm board.
Nufarm shareholders will consider the offer at a meeting on 2 March.
Sumitomo says it has obtained approval from the Foreign Investment Review Board for the investment in Nufarm.
