Chinese agrochemical company Limin Chemical announced that the company, together with Xinrong Investment and others approved by Limin Chemical and Xinrong Investment, will make cash acquisition of 100 percent of stakes held by investment holding company ENN in Hebei Veyong Biochemical, Hebei Veyong Animal Pharmaceutical and Inner Mongolia New Veyong Biochemical.

Limin Chemical said that the acquisition is an important step in the company’s strategic business deployment to achieve the strategic objective of the company. The move is of practical significance to the company’s rational business distribution, product portfolio enrichment and sales channel enhancement.

The underlying asset value for final closing is estimated to range between 750 million yuan to 800 million yuan ($108.3 million to $115.5 million).

The deal will further improve the sustainable development of Limin Chemical, which will be supported by the complementary advantages of each company to be acquired. Via the acquisition, the company will be running on 3 business portions fungicide, insecticide and herbicide, which will further reinforce its important role played in the industry.