25 Jan 2010

Sumitomo board backs takeover of Nufarm

7:01 am on 25 January 2010

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.