Coromandel International Acquires Major Stake in Sabero Organics

Coromandel International, a leading Indian manufacture of pesticides, fertilisers etc has acquired 42.22% of the promoters stake in Sabero Organics - paying a premium (estimated to be Rs.63 per share over the stock market quotation of Rs.97 as on 31st May) . The total cost of acquisition is estimated to be in the range of Rs.400 crores to Rs.450 crores. The acquisition would result in Coromandel having about 75% of the shareholding in Sabero.

Sabero has four subsidiaries - in Argentina, Australia, Brazil, and Europe. It has some 240 registrations for its key products.

Kapil Mehan, Managing Director, Coromandel International said: "We thought it fit to pay a premium after our own detailed analysis. There is a lot of Sabero's und ber-utilised production capacity and we can also leverage the export potential." He further said: "We concluded that the acquisition will provide us rhe perfect synergy and position us among the top five plant protection companies in India, apart from giving us a new opportunity to strengthen our formulations business.

According to Mehan, Coromandel would now have a range of more than 16 technical grade pesticides.