21 December 2020, Asia: Nissan Chemical Corporation announces the acquisition of the Mancozeb product line of fungicides in Japan and Korea from Corteva, Inc.
Mancozeb is a protective fungicide which shows significant efficacy against various plant diseases, mainly used in Asia and South America by Corteva Agriscience with brand name “DITHANE®”. As protective fungicides inhibit the invasion of disease pathogens into the plant cells by staying on the plant surface, they generally show the best efficacy by the preventive application. In Japan, product line named “ZIMANDITHANE™” mainly sold for fruit trees, such as apple and citrus, and one named “GREENDITHANE ™” mainly sold for field crop, such as potato, have been used by farmers for long years. The collective sales amount of both product lines accounts for one of the top share products among Japanese protective fungicide market which we estimate 16.5 billion yen (manufacturer selling price level). Detailed information for the sales transition from Corteva Agriscience, will be provided in the customer letters.
This Mancozeb acquisition along with our own proprietary product, such as recently launched insecticide product “GRACIA” would be expected to become our fundamental stone of Agricultural Chemicals Division, one of the core profit of Nissan Chemical, to expand its business by fulfilling the product catalogue. Reference
Acquisition’s estimated PL impact (Yen billion, round number)
FY2020 (OP) 0, (OP+Amortization) +0.2
FY2021 (OP) 0, (OP+Amortization) +1.0
Total FY2022-2026 (OP) +1.0, (OP+Amortization) +5.0
Note: Those numbers are tentatively calculated under the condition of 5-year amortization period. We will revise those numbers after the outside audit. As a reference, last year’s Quinoxyfen business acquisition case, the average amortization period of each intangible asset was around 8 years.