United Phosporus eyes acquisitions in Europe

The country's largest generic agrochemical company United Phosporus is planning acquisitions in Europe.

Confirming this, UPL sources said the company had received three proposals from Europe. "We are evaluating the proposals," they said. However, they declined to indicate the size of the deal.

However, sources close to the development said the deal would be in the range of $150 to $200 million.

A senior UPL executive said the company was looking forward to firms with broad product registrations for European markets. The company has growth plans for both overseas and domestic markets through inorganic route.

"For a strategic deal that will complement our growth plan, finance may not be constraint," he said.

UPL recently informed the Bombay Stock Exchange that its members at the last EGM had unanimously approved the resolutions authorising the company to borrow money (apart from temporary loans obtained from the company's bankers in the ordinary course of business) not exceeding a sum of Rs 3,000 crore (Rs 30 billion) and also to issue an FCCB or any other financial instruments for an amount not exceeding $150 million.

The company had recently acquired 100 per cent stake of an Argentinean company - Reposo, a manufacturer and distributor of crop protection products located in Buenos Aires.

The deal included all stocks including assets of the company, products registrations, manufacturing site and all other property rights associated with the business of Reposo.

The total cost of the acquisition was $11 million. The acquisition, which was an all cash deal and it was funded through its cash accrual.