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Monday, September 8, 2014

Denmark's Auriga sells crop unit Cheminova to FMC Corp for $1.8 bln, (NYSE: FMC)

Auriga Industries has agreed to sell its crop protection unit Cheminova to U.S.-based chemicals firm FMC Corp for 10.5 billion Danish crowns ($1.8 billion), the Danish company said on Monday. The price for 100 percent of Cheminova shares corresponds to a cash consideration of about 8.5 billion crowns adjusted for net debt, equalling 333 crowns per Auriga share, the company said. Its shares closed at 305 crowns on Friday.The company said in July it was considering a sale of the unit. Debt financing of up to 720 million euros ($962 million) had been prepared for the sale, banking sources said Reuters.Cheminova represents the only business of holding company Auriga, which is expected to de-list following the takeover by FMC Corp. Aarhus University is its largest shareholder, with a stake of just under 40 percent, according to Reuters data.The deal is subject to approval by Auriga's shareholders at an extraordinary general meeting, expected in October, and from relevant competition authorities. The transaction is expected to close in early 2015, followed by distribution of cash proceeds to shareholders in 2015, Auriga said in a statement.

FMC Corporation (FMC) is a diversified chemical company. Shares of FMC traded higher by 0.24% or $0.16/share to $65.60. In the past year, the shares have traded as low as $64.05 and as high as $83.94. On average, 1133600 shares of FMC exchange hands on a given day and today's volume is recorded at 540728.