Nufarm (NUF) has ceased talks with the Chinese-led consortium which offered the agricultural chemicals company a $3 billion offer last month as the consortium has been unable to formalise its proposal.
The proposal – which was from a consortium comprising China National Chemical Corporation, the Blackstone Group and Fox Paine Management – offered Nufarm $17.25 cash per share by way of a Scheme of Arrangement.
Nufarm and the consortium entered into an exclusivity deed that expires at midnight tonight, December 10.
"Nufarm has provided the consortium with due diligence in accordance with that deed," Nufarm said.
"The consortium has advised Nufarm that it will be unable to formalise its proposal prior the expiry of the exclusivity period and, accordingly, discussions between Nufarm and the consortium have ceased."
Nufarm said it was not obliged to reimburse the consortium for costs and that once the exclusivity deed has expired, it would no longer be under any exclusivity obligations to the consortium.
Nufarm chairman Kerry Hoggard said Nufarm's board and management remained committed to maximising value for shareholders.
"Looking forward, we are strongly positioned to generate additional growth from our existing business and to participate actively in industry consolidation opportunities," he said.
"Nufarm will continue with its expansion plans in the context of a very positive environment and future outlook for companies involved in agricultural industries."
Nufarm fell by 12% or $2.02, closing down at $14.70.
