27 Jul 2009

Takeover in wind for Nufarm

3:49 pm on 27 July 2009

China's largest chemicals trader has confirmed it is in talks with agricultural chemicals supplier Nufarm about a potential takeover.

Sinochem Corp says the discussions are at a preliminary stage and there is no certainty any deal will be done.

Sinochem, which is based in Beijing, has more than 200 branches in China and other countries and employs more than 30,000 people.

On Friday, Nufarm said it had been approached by Sinochem about a potential takeover, sending its shares up 13%.

It also issued a profit warning, saying there is a risk that its full-year net operating profit may be as much as 15% below its previous guidance.