Takeover brings Netafim’s smart irrigation technology that could be applied across other markets
Mexican chemicals group Mexichem has agreed to buy an 80% stake in irrigation systems specialist Netafim for around $1.5 billion (£1.2 billion). If approved by regulators and shareholders, the deal will be funded through a combination of cash and borrowing.
Mexichem will gain access to Netafim’s smart irrigation technology which includes digital crop management and automation systems designed to minimise water and nutrient usage. Israeli-headquartered Netafim has 17 manufacturing plants and more than 4300 employees worldwide.
‘Netafim positions us to become a leading developer of solutions to address food and water shortages, and respond to the need of increase crop yields and meet higher sustainability standards for fertilization,’ said Mexichem’s chief executive Antonio Carrillo Rule in a statement.
Netafim chief executive Ran Maidan said that the deal would help the two companies reach new customers. ‘We also will be able to apply our R&D and technical expertise in developing end-to-end innovative solutions that Mexichem can offer to its industrial customer base,’ he added.