The global agrochemicals market in the year 2013 stood at USD 41.12 Billion, marking a massive 43% growth compared to USD 28.78 Billion. Increased participation of private players and their rigorous effort in improving products and expanding worldwide has supported enormous growth in the market. Mergers & acquisitions have resulted in the consolidation of the agrochemicals market, and this trend is expected to continue in the coming years. A comparatively intense completion among large-scale players has led to mergers & acquisitions in the market with only six players including Syngenta AG (Switzerland), Bayer CropSciences (Germany), BASF (Germany), The Dow Chemical Company (U.S.), Monsanto (U.S.), and DuPont (U.S.) controlling more than 80% of the global agrochemical product sales.
Based on the deal type during the period March 2000 to March 2016, the maximum number of the deals was acquisitions followed by agreements in the agrochemicals market. Among the varied agrochemical market segments, such as herbicides, fungicides, insecticides, and plant growth regulators, herbicides accounted for the largest market share, followed by fungicides and insecticides. Apart from the major market segments, there have been various combinations of opportunities that the agrochemical companies are looking for in entire crop-protection product portfolios or different combination of agrochemical products, for example, deals in fungicides and insecticides, patents and distribution of agrochemicals, and others. Agricultural or crop protection technology, retail operations, and distribution facilities will also drive mergers & acquisitions in the market.
Maximum deals (by acquirer) are witnessed by companies headquartered in the Asia-Pacific region followed by North America and Europe, as major agrochemical companies are located in Europe followed by North America. Maximum deals (by target) are witnessed by companies headquartered in the North American region and Europe, as in these regions the agrochemicals market is well developed and has a large number of established companies with a wide range of companies offering various product portfolios in the market.
Companies are continuously in search of growth opportunities that offer unique potential product segments with rich R&D capabilities and large-scale manufacturing capacities in the agrochemicals market. Patent rights, R&D facilities, feedstock access, and overall profitability prospects boosted mergers & acquisitions in the market in the last few years.
Key players identified in the agrochemicals market include Syngenta A G (Switzerland), Bayer CropScience (Germany), BASF (Germany), Dow Chemicals (U.S.), Monsanto (U.S.), and DuPont (U.S). Other players include United Phosphorus Limited (UPL) (India), China National Chemical Corp (China), ADAMA Agricultural Solutions (Israel), Nufarm Limited (Australia), and Sumitomo Chemical (Japan).
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