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Mergers and Acquisitions in Chinese Pesticide Industry in 2011-2017 Edition (1)

In 2010, there were more than 2,400 pesticide producers in total in China, most of which were small and medium-sized ones with poor R&D capability. In recent years, Chinese pesticide industry has made substantial progress in the adjustment of industrial structure and product structure and in the promotion of technological innovation and industrial upgrading. Despite years of development, the domestic pesticide industry still faces problems, such as low industrial concentration, small enterprise scale, overcapacity of some products, serious product homogeneity, weak innovation ability, less advanced technology and equipment, and lagging technologies of the treatment of "three wastes" (namely waste water, waste gas and waste residues).

Nowadays, many medium- and small-sized enterprises are unable to adapt to the fierce competition, especially in the face of increasing pressure from environmental protection and safety, poor R&D ability, low value added products, serious homogeneous competition and overcapacity. As M&A are becoming a common practice among international agrochemical giants, Chinese pesticide enterprises need to build up large pesticide groups through adjustment of organization structure, mergers and restructuring to strengthen competitiveness.

Therefore, establishing large business groups by mergers and acquisitions (M&As) to expand production scale of enterprises has been one main guideline of the Chinese government for the pesticide industry. M&As has also become one of the key words in the Chinese pesticide industry. As the deadline of China's 13th Five-year Plan period (2016-2020) is coming, it's likely that China will see more M&A activities. M&A is companies' normal response when they suffered market depression. It is also a requirement of the Chinese pesticide industry due to the industry's own structure. M&As have been a developing trend to eliminate inefficient capacities and to improve industry concentration with the adjustment of national macro policies. It is believed that more and more outmoded enterprises will be eliminated or be acquired by the superior ones, with strict government control, increasing entry thresholds and improving production concentration.

This report is about mergers and acquisitions happened in 2011-2017 in Chinese pesticide industry. Under the guidance of national macro-policy and the strict supervision of environmental protection laws, mergers and acquisitions will be a trend in Chinese pesticide industry, which will help to weed out backward production capacities and to improve industry concentration.

From this report, you can find the answers of the followings:

  • Why China speed up the process of mergers and acquisitions in the pesticide industry?
  • How the number of pesticide manufacturers in China changed in recent years and how about the industrial concentration of pesticide industry in China?
  • How many mergers of enterprises happened in pesticide industry in China in 2011-2017?
  • How about business transfer and acquisition in pesticide industry in China in 2011-2017?
  • How many enterprises voluntarily gave up pesticide production qualifications in 2015-2017 and why?

The data collected and compiled was variously sourced from telephone interviews, published magazines, journals, government statistics and CCM's database, etc. Data obtained from various sources have been combined and cross-checked to ensure that this report is as accurate and methodologically sound as possible.

Scope of the report

Region scope: China

Time scope: 2011-2017

On the basis of the M&A category: Merger of enterprises in pesticide industry in China, Business transfer and acquisition in pesticide industry in China and Enterprises Voluntarily Giving Up Pesticide Production Qualifications.

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Mergers and Acquisitions in Chinese Pesticide Industry in 2011-2017 Edition (1)
Published By :CCM International
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