United Phos chomps off Dow Agro in $25m deal

MUMBAI: Maintaining its frenetic pace of acquiring brands and businesses in the agrochemicals industry, United Phosphorus Ltd (UPL) on Wednesday made another acquisition. This time its shopping fetched Dow AgroSciences LLC’s global propanil herbicide business, marketed as Stam herbicide.

Under this agreement, UPL and its subsidiaries throughout the world can start selling Propanil and its formulations immediately. The total turnover of this product in 2005 was $18.9 million (Rs 84.67 crore). The total cost of the acquisition is about $25 million (Rs 112 crore) including inventories, UPL said.

With this, UPL has completed its sixth acquisition this year. Last fortnight, it clinchéd Cerexagri from Arkema.

Shares of UPL gained 4.51% to Rs 293.30 on Wednesday from its overnight close of Rs 280.65. The announcement was made after the close of trading hours.

Propanil is a selective non-residual herbicide for the control of grasses, broadleaf and sedge weeds used in rice.