Share Purchase of Iharabras S.A. in Brazil
-Accelerating Globalization of Agrochemical Business-
October 6, 2011
Mitsui Chemicals, Inc.
Mitsui Chemicals Agro, Inc.
Mitsui Chemicals Agro, Inc. (“MCAG”) with its head office in Tokyo, Japan (Takehiko Kanai, President) announced today that it entered into a share purchase agreement with Agroinvest Kayatani S.A. Administração, Empreendimentos e Participações (Kayatani) with its Head Office in Sao Paolo, Brazil (Kunikazu Ninomiya, CEO) to acquire an 11.89% share of Iharabras S.A. Indústrias Químicas (IBIQ) with its Head Office in Sao Paolo, Brazil (Julio Borges Garcia, President), an agrochemicals company. The share purchase and transfer was concluded on September 26, 2011 (Brazil time).
1. Purpose of Share Purchase
Mitsui Chemicals, Inc. positions its agrochemical business as one of “Five Priority Businesses”, which are resilient to fluctuating economic conditions, in its 2011 Mid-term Business Plan (FY2011-FY2013) and has proactively pursued expansion.
In line with the fundamental strategy of the Mid-term Business Plan, MCAG, which is responsible for the Mitsui Chemicals Group's agrochemical business, reached an agreement to purchase IBIQ shares to establish closer cooperation with Brazil's strongest pesticide manufacturer/distributor to strengthen its presence and proactively expand business in the strategically important Brazilian market.
IBIQ is an excellent business partner for MCAG's Brazilian business as it manufactures and distributes agrochemical formulations (note 1) using active ingredients (note 2) supplied by MCAG.
The share purchase will reinforce the Mitsui Chemicals Group's competitive edge and regional market knowhow in promoting sales of existing products and accelerating development of new core products by enhancing its relationship with IBIQ.
(note 1) formulation: adjusted, compounded, processed agrochemical product used in agriculture
(note 2) active ingredient: ingredient used in formulation of agrochemical products
2. Overview of IBIQ
| (1) Company Name | Iharabras S.A. Indústrias Químicas |
| (2) Line of Business | Manufacture and sales of formulations for pesticides |
| (3) Establishment | March 18, 1965 |
| (4) Head office | Sorocaba, São Paulo, Brasil |
| (5) Chief Officer | Julio Borges Garcia (President) |
| (6) Sales | BRL498,000,000 |
