Dhanuka Agritech inks pact with Bayer AGl; stock gains

25 Nov 2024 , 12:29 PM

Dhanuka Agritech Ltd’s shares rose more than 2% on Monday, November 25, after the business signed a deal with German multinational Bayer AG to acquire crop protection active chemicals.

In a stock exchange filing on November 25, Dhanuka Agritech stated that it had inked a deal with the German business to acquire two major crop protection active ingredients—Iprovalicarb and Triadimenol—as well as the Melody brand connected with Iprovalicarb.

The deal, which is subject to specified closing measures, would allow Dhanuka to secure rights to commercialize these items in India and select other countries, expanding its worldwide reach.

This agreement is consistent with Dhanuka’s aim of diversifying its portfolio and expanding its products to suit the increasing need for innovative crop protection solutions. 

In its stock exchange statement, Dhanuka stated that the arrangement does not entail any ownership or related-party transactions with Bayer AG.

Furthermore, the transaction does not include the issuing of shares or other special rights, such as capital structure adjustments or board nominations.

Dhanuka Agritech intends to use the capabilities of Iprovalicarb and Triadimenol to combat crop diseases and increase agricultural output. The purchase is intended to strengthen the company’s competitive position in the rapidly developing agrochemical business.

At around 12.21 PM, Dhanuka Agritech was trading 2.64% higher at ₹1,518.55 per piece, against the previous close of ₹1,479.55 on NSE.

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