The Hindu Business Line : United Phosphorus in talks to buy Shaw Wallace Agro

It is in advanced talks to buy SWAL Corporation (formerly Shaw Wallace Agrochemicals Ltd), the Rs 75-crore business that is part of the Manu Chhabria family-managed Jumbo Group.

Informed sources said UPL, among the world's top five generic agrochemical companies, has already conducted due diligence and a deal was in the offing. However, the deal size could not be ascertained. When contacted, Jumbo Group offered no comments, and UPL, despite repeated attempts, did not reply. It is learnt that UPL is the only acquirer in the fray for SWAL Corporation.

Sources said the Rs 1,051-crore UPL's interest in SWAL, a relatively smaller target, was on account of its low cost of operations and the synergic fit in the market for crop resistant products. SWAL has three brands — Starthene, MIT and Sterameal. In the recent past, UPL acquired the US firm AG Value for $35 million, Aciflourofen compound from Germany's BASF and Oryzalin herbicide business of Dow AgroSciences in a bid to expand its global foot print.

The Dubai-based Jumbo Group has put the business on the block as part of its strategy to quit Indian shores, and has already struck deals to sell Shaw Wallace & Co's spirits business to the UB Group and Hindustan Dorr Oliver to IVRCL Infrastructures & Projects Ltd. Business Line (March 22) had reported that the Chhabria family has decided to offload all their Indian companies, which also include Mather & Platt, Falcon Tyres and Dunlop India Ltd.

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