Huapont Pharm Buys 58% of Qingfeng Agrochemical

On September 6, Chongqing Huapont Pharm Co., Ltd (Huapont Pharm) announced that it had signed an agreement with Hangzhou Industrial Assets Management Investment Group Co., Ltd (Hangzhou IAMIG). According to the agreement, 58.26% of the shares of Hangzhou Qingfeng Agrochemical Co., Ltd (Qingfeng Agrochemical) are to be acquired by Huapont Pharm from Hangzhou IAMIG for RMB 58.08 million.
   Through the acquisition, Huapont Pharm is expected to expand its strategic base for resource production relying on Qingfeng Agrochemical, and to enter directly into the field of production and sales of agrochemical formulations, extending its product line further.
   Products of Qingfeng Agrochemical include alachlor, acetochlor, metolachlor, propisochlor and fungicide prochloraz. In 2011, its total assets reached RMB 555 million and its sales revenue reached RMB 365 million. However, it had a total loss of RMB51 million that year.
   With the acquisition, Huapont Pharm will integrate its technology, process improvement and market expansion with Qingfeng Agrochemical in order to make the latter achieve profits in 2013.
   In addition to domestic M&A transactions, Huapont Pharm will also increase overseas investments. Currently, the company is planning to invest US$1 billion to buy the shares of a company in North America.