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FMC

FMC Corp Gets CCI Approval for Crop Protection Assets Buy

FMC CorporationFMC said that it has secured approval from the Competition Commission of India (CCI) for its proposed purchase of a significant portion of DuPont's Crop Protection business.

The CCI is the final jurisdiction to grant antitrust approval required to satisfy regulatory conditions for the closure of the deal. FMC Corp. expects to complete the transaction on Nov 1, 2017.

FMC Corp., in March, agreed to buy a major portion of DuPont's Crop Protection business. Under the deal terms, FMC Corp. will buy DuPont's Cereal Broadleaf Herbicides and Chewing Insecticides portfolios as well as substantially all of the latter's crop protection research and development pipeline. These assets generated revenues of around $1.4 billion last year. As part of the deal, DuPont will also purchase FMC's Health & Nutrition business.

The planned acquisition has provided a significant growth platform for FMC's Agricultural Solutions unit. After deal closure, FMC Corp.'s Agricultural Solutions unit will become the fifth biggest crop protection chemical company in the world by sales with estimated annual revenues of around $3.8 billion. The acquisition will significantly increase the company's presence in Asia and Europe and will be immediately accretive to its adjusted earnings per share.

FMC Corp. has outperformed the industry it belongs to over a year. The company's shares have rallied around 87.3% over this period, compared with roughly 29.1% gain recorded by the industry.

FMC Corp. is benefiting from its strategic investments, acquisitions and efforts to expand its market position and strengthen its portfolio. The company is investing in technologies in its agriculture business and launching new products with a goal to enhance value to farmers.

FMC Corp. is also witnessing strong momentum in its Lithium unit. The company is expanding its lithium hydroxide production capacity.

FMC Corp. currently carries a Zacks Rank #3 (Hold).

FMC Corporation Price and Consensus

FMC Corporation Price and Consensus | FMC Corporation Quote

Stocks to Consider

Better-ranked stocks in the basic materials space include Kraton Corporation KRA , Kronos Worldwide, Inc. KRO and Koppers Holdings Inc. KOP , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Kraton has expected earnings growth of 7.2% for the current year.

Kronos has expected long-term earnings growth of 5%.

Koppers has expected long-term earnings growth of 18%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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