Omnia close to a deal on Oro Agri

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Omnia close to a deal on Oro Agri

Published Date: 2020-10-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Omnia close to a deal on Oro Agri

The fertiliser and chemicals group is in final negotiations after receiving an offer for the business this year.

Omnia says it's in final talks over the sale of Oro Agri following an unsolicited approach for the AgriBio business it bought just two and a half years ago.

In a cautionary announcement, the fertiliser and chemicals group said the engagement process with the potential buyer had progressed to final negotiations and, if a transaction was concluded, it could affect its share price.

Omnia first alerted shareholders to the possible sale in June when it received a non-binding offer that it believed deserved the consideration of its board of directors. At the time, it said Oro Agri was not a business that it considered to be for sale.

In 2018, Omnia paid about $100 million for the company, which is involved in the research and development, production and sales of a range of patented agriculture biological products. Its key range includes biostimulants, adjuvants, crop protection productions and a range of soil conditioners and fertilisers. It was started in the US in the late 1990s but has expanded to cover six continents. It operates out of Brazil, Europe, South Africa and is currently developing a hub in the Asia Pacific region.

At the time of purchase, Omnia said the acquisition presented strong complementary attributes that would accelerate its own growth into key agriculture markets where Oro Agri was already well established. It planned to use its global network to expand the sale and distribution of its existing range of plant nutrients, biostimulant products and agricultural services.

Omnia's shares jumped 5.3% to R37.27 yesterday.





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