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Cheminova sold to a US company
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September 8th, 2014
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Sale of insecticide maker looks like a boost for a small town and a university
The Danish company Auriga has sold its subsidiary, insecticide maker Cheminova, to the American chemical company FMC for 8.5 billion kroner
The sale, which is expected to be finalised in early 2015, had been rumoured for a while.
Once the purchase is accepted by Auriga shareholders, production is expected to continue at Cheminova’s current locations.
“FMC is the perfect match for us from an industrial perspective,” explained Auriga's president Jens Due Olsen, who is a member of the Cheminova board, to DR Nyheder.
“FMC is a successful and highly regarded company that appreciates our production skills and our global organisation.”
Relief in Jutland
Residents of the north-western Jutland town Harboøre, many of whom work for Cheminva, expressed relief that the company will be in the hands of an industrial concern and not a private equity fund, which had been rumoured during the summer.
“We feel positive that the company was sold to an industrial partner rather than a private equity fund,” union representative Gunnar Andersen told Jyllands-Posten. “We look forward to working with them.”
Money for science
Aarhus University is a major shareholder in Auriga Industries, Cheminova’s parent company.
The school’s research foundation will reap a 3 billion kroner dividend if the sale is approved. The school controls 83 percent of the stockholder votes and has already indicated that it is in favour of a sale.
"The sale would give us some additional resources,” Jørgen Lang, the head of the research fund, told Jyllands-Posten. “It is too early to speculate how we would use the funds.”
READ MORE: Russian gas embargo would hurt Danish business
Aarhus University's research foundation is a private foundation formed to support scientific research at the university.
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