BUSINESS

ChemChina buys out Alfa Agricultural

VANGELIS MANDRAVELIS

TAGS: Business

Israeli company Adama has completed the acquisition of Greek firm Alfa Agricultural Supplies SA. Adama bought out the remaining 51% stake in Alfa for an undisclosed amount, taking its holding in the local company to 100%. This practically means Alfa has passed into the hands of the Chinese company that controls the Israeli enterprise.

Alfa has an annual turnover of more than 50 million euros and is considered the second biggest producer and supplier of agriculture-related products (pesticides, fertilizers etc) in Greece after Hellenic Fertilizers and Chemicals.

Adama was fully acquired by ChemChina in September 2016 for $2.8 billion. Since then ChemChina has indirectly controlled 49% of Alfa Agricultural Supplies via the holding Adama obtained in the Greek companies back in 1993.

Notably, Alfa’s sale does not include the company’s production unit at Oinofyta, north of Athens, or the two distribution centers at Oinofyta and Thessaloniki. These three assets were transferred to Magma Agricultural Inputs SA, a company belonging to Alfa’s owner and seller of the 51% of shares, Vassilis Paisios. Therefore Adama has undertaken all of Alfa’s commercial activity in Greece and Bulgaria.

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