M&As in 2024 Crop Protection Industry: Regional Deep Cultivation, Channel Transformation, and Technological Upgrade

Editor’s note: M&A in the global crop protection industry in 2024 is characterized by regional market commitment, accelerated channel integration, technological innovation, and upgrading. From a regional layout perspective, the markets of Brazil, Oceania, and Southeast Asia became hot regions of mergers and acquisitions, where a number of blockbuster M&A deals facilitated the reshaping of the market structure. Multinational agrochemical giants continued their intensive market layout via the acquisition of local distributors, whilst local leading companies expanded market share to enhance competitiveness through integration and consolidation. The integration of distribution channels became a focus of mergers and acquisitions, and many companies strengthened the setup of sales networks through acquisition. At the same time, enterprises focused on the enhancement of technological innovation capability through mergers and acquisitions, which helped to gain valuable R&D capability and patent portfolio. 

These M&A activities are driving profound changes in the industry landscape, not only increasing market concentration but also facilitating the improvement of service and optimization of the supply chain. Looking ahead, in the circumstances of globalization and regionalization, and while digital and precision farming is emerging, mergers and acquisitions in the crop protection industry are expected to be continuously active. Via mergers and acquisitions, enterprises will gain more technical resources and market share to promote the sustainable development of the industry. 

M&A highlights

1. Distinctive regional deep cultivation 

In 2024, agrochemical mergers and acquisitions revealed characteristics of regional deep cultivation, demonstrating a strengthened market layout made by a number of enterprises in key markets via mergers and acquisitions. 

As one of the world’s largest agrochemical markets, Brazil continued to attract industry giants' M&A investments. Nutrien launched its unified new brand, Agroessence, via the acquisition of two traditional input distributors, Casal and Cultive, having assembled more than 2,500 resellers. This initiative aims to present a nationwide agricultural distribution network to better serve the Brazilian market and promote innovative and sustainable development of the industry. 

Syngenta further expanded its presence in Brazil by acquiring an agricultural inputs distributor.This is Syngenta’s fourth distributor acquisition in Brazil in three years, demonstrating its continued commitment to the Brazilian market.

In the Ocean market, mergers and acquisitions are occurring at an accelerating pace. The Australian agri-services giant Elders further strengthened its market leadership with the acquisition of Delta Agribusiness, which cost AUD475 million. Delta operates its business through 68 locations, serving approximately 40 independent wholesale customers and having annual revenues of AUD835 million. The acquisition is expected to significantly strengthen the presence of Elders in key regions such as New South Wales and northwestern Victoria.

Also, the market layout in Southeast Asia is constantly being perfected. India’s UPL completed the acquisition of the remaining 20% stakes in the Indonesian PT Excel, having achieved complete control of PT Excel. This acquisition enabled UPL’s more autonomous operation in Indonesia, which laid a solid foundation for its strategic expansion in Southeast Asia. PT Excel has a broad distribution network in Indonesia, operating in the distribution of agrochemicals, seeds, fumigants, and fertilizers.

2. Integration of distribution channels becoming a focus of M&A 

The integration of distribution channels is another highlight of agrochemical M&A in 2024. Sipcam Oxon’s acquisition of New Zealand-based Grosafe Chemicals is a significant expansion of the distribution network in the Asia-Pacific region. For nearly three decades, Grosafe has consistently provided high-value-added solutions to New Zealand agriculture, with a stable customer base and a well-established distribution system. Also, Grupo Duwest’s acquisition of Syngenta’s GRAMOXONE business is eye-catching, which enabled the acquisition of paraquat-related assets in 11 countries, including Mexico and Guatemala, covering a number of well-known trademarks, registrations, and related intellectual property rights. The acquisition strengthened Grupo Duwest’s market leadership in the Central American market. 

The consolidation process of local companies is also accelerating. The U.S. agricultural inputs distributor CHS and West Central Ag Services executed an M&A letter of intent, aiming to provide better service to customers with the complementary advantages of each other. This cooperation will help optimize the efficiency of the supply chain and enhance market competitiveness. Another U.S. agri-dealer, GROWMARK, acquired the agrochemical manufacturer AgraForm, gaining expertise in agrochemical processing covering spray drying, grinding, packaging, and storing. This vertical integration is destined to lead to the optimization of GROWMARK’S supply chain management. 

3. Technological innovation and R&D integration

Part of the M&A cases reflected the importance of technological innovation and R&D capability. Best Agrolife acquired the Indian Sudarshan Farm Chemicals, gaining access to the latter’s strong R&D capability and extensive intellectual property portfolio. It is worth mentioning that SFCL is an established name in the field of agrochemicals and innovative process chemistries, with an IP portfolio of 10 patents (applied). These technological assets are expected to significantly enhance Best Agrolife’s innovation capability.

UPL acquired Corteva Agriscience’s global mancozeb business, having obtained a complete regulatory, scientific dossier of mancozeb and the Rainshield™ technology. This acquisition not only expanded UPL’s product portfolio but also enhanced the company’s multi-site fungicidal technology.

Furthermore, Rainbow completed the acquisition of an agrochemical formulation plant in Texas, USA, which further expanded Rainbow’s production layout in the North American market, reflecting its strategic planning of high-end agrochemical formulation production.

Impact of M&As 

1. Further increase in market concentration 

M&A in 2024 significantly increased the market concentration of the crop protection industry. Multinational agrochemical giants further strengthened their leadership position in the global market by acquiring regional leaders or emerging high-tech enterprises. For example, UPL’s acquisition of PT Excel and Syngenta’s acquisition of Produtécnica significantly strengthened corporate competitiveness in the target markets. This kind of increased market concentration helps to optimize resource allocation and improve the overall efficiency of the industry, which, however, may also lead to intensified market competition, causing more significant pressure on the survival of small and medium-sized enterprises.

2. Acceleration of technological innovation and product upgrading 

M&A activities brought new technical resources and innovation impetus to the crop protection industry. By combining the technological strength of both sides, enterprises are able to launch new products more quickly. For example, Best Agrolife acquired 10 patents and a strong R&D capability through the acquisition of Sudarshan Farm Chemicals, which includes the planned development of a more cost-competitive generic molecular technical route. Moreover, Sipcam Oxon could further strengthen its technological capability in the field of biostimulants and biologics with the acquisition of Grosafe Chemicals. The acceleration of technological innovation and product upgrading are destined to promote the development of the crop protection industry in a more efficient and environment-friendly direction.

3. Synergistic effect of industry integration and collaboration 

The integration and synergy of regional enterprises were another feature of mergers and acquisitions in the field of crop protection in 2024. Through mergers and acquisitions, enterprises can achieve optimal allocation of resources and improve operational efficiency and service capability. For example, Elders’ acquisition of Delta Agribusiness not only strengthened its market presence in Australia’s agricultural service sector but also further enhanced Elders’ service capacity and market competitiveness by integrating the technology and resources of both sides. Industry integration and synergy will help improve the overall efficiency and service quality of the crop protection industry and promote sustainable development.

M&A Trending

1. Coexistence of globalization and regionalization

In the future, the crop protection industry will continue to exhibit the development trend of globalization and regionalization. Multinational agrochemical giants will continue the expansion of global market share through mergers and acquisitions as well as the establishment of strategic partnerships, especially in emerging markets. For example, UPL’s acquisition of PT Excel deepened its strategic presence in the Southeast Asian market. Meanwhile, regional enterprises are prepared to enhance market competitiveness in the local market through consolidation and synergy. For example, Elders acquired Delta Agribusiness to strengthen its leading position in the Australian agricultural service sector further.

2. Technological innovation and sustainable development

With the increased global attention to environmental protection and sustainable development, the crop protection industry is increasingly targeting technological innovation and sustainable development. To this end, enterprises are obliged to acquire advanced technologies through mergers and acquisitions to develop more environment-friendly and efficient crop protection products. For example, Sipcam Oxon acquired Grosafe Chemicals to strengthen further its technological capability in the field of biostimulants and biologics. Moreover, Rainbow acquired a U.S. formulation plant to further expand its business layout in the North American market, reflecting its strategic planning of manufacturing high-end agrochemical formulations.

3. Digitalization and precision farming 

Digitalization and precision farming have become essential directions for the development of crop protection. Enterprises are bound to acquire advanced digital technology and precision farming solutions through mergers and acquisitions to enhance their core competence in agrotechnology. For example, Elders acquired Delta Agribusiness to further strengthen its capabilities in agrotechnology and precision farming. Also, via the merger of Casal and Cultive, Nutrien launched the Agroessence brand, which is meant to bring advanced agricultural technologies to farmers across the country, especially to small and medium-sized growers, to ensure their access to professional technical aid. 

This article was published in the magazine of 2024 Annual Review. Follow this magazine to read more articles/stories.

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