China National Chemical Corp, or ChemChina, plans to acquire a 60 percent stake in Israel's Makhteshim Agan Industries, the world's largest generic agrochemicals maker.

ChemChina will buy a 53 percent stake from public shareholders for US$1.27 billion and pay US$168 million to Koor Industries, the parent of MA Industries, for another 7 percent, MA Industries said in a statement yesterday. The price marked a 18 percent premium over Monday's closing share price of Tel Aviv-listed MA Industries.

Besides energy and minerals, China is also seeking overseas acquisitions in agriculture and chemicals to secure a long-term supply as the economy grows.

The deal is set to be sealed in the second or third quarter of 2011, MA Industries said. MA Industries will then be 60 percent held by ChemChina and 40 percent by Koor.

The deal is subject to approval of MA shareholders and Chinese government authorities.

MA, whose products include herbicides, insecticides and fungicides, has a 5 percent share in the global crop protection market, according to the company's website.