BSM acquired 20% equity of Generic with ¥85 million

On December 8th, BSM announced that in order to further enhance the global layout ability and comprehensive competitive strength of BES, fully integrate the advantages of pesticide manufacturing of the company with the advantages of overseas marketing channels of Generic, and achieve the strategic development objectives, BSM plans to pay ¥85 million in cash for a 20% stake of Generic.

BSM is the only environmental pesticide enterprise in China with the ability to produce and research the whole industrial chain of Pendimethalin technical, intermediate and formulation. In recent years, the company mainly exports technicals, gradually deepening the cooperation with BASF, and actively promoting the acceptance of BASF's technical capacity of Pendimethalin. This acquisition actively responds to the policy, promotes the strategy of pesticide, and helps the development of modern agriculture in target countries and regions. It is an effective extension and supplement to the pesticide synthesis and manufacturing business of the listed company, and is conducive to the global layout and strategic expansion of the listed company.

Generic is a professional enterprise engaged in the international trade of pesticides, the main business is the international export registration and sales of pesticides. With 16 overseas subsidiaries and 5 subsidiaries in Hong Kong, the business scope covers more than 70 countries and regions in South America, Central America, North America, Asia, Africa and Europe. With independent registration as the starting point, the company created a sales model combining the traditional export model and independent registration model of pesticides, realizing the independent and controllable overseas sales channels.

As of June 30, 2022, Generic has owned or controlled 856 independent certificates of pesticides in Argentina, Uruguay, Brazil, Colombia, Peru and other places, and is applying for 435 registrations of pesticides. More than 4,000 GLP experimental reports can be used for overseas agricultural registration’s application, providing sufficient resource support for the company's subsequent overseas registration layout. 

After the completion of the acquisition, BSM will make use of Generic's global strength and rich foreign trade business