China National Chemical Corp (ChemChina) has signed a deal to buy 60 percent of Israel's MA Industries, China's latest move to grow in the global agricultural chemicals market.

The deal, which values the world's biggest maker of generic crop protection chemicals at US$2.4 billion, will see MA's parent Koor Industries retain 40 percent of the maker of fungicides, pesticides and herbicides, Koor said on Sunday.

The companies had said on December 28 that a sale had been agreed and the deal would be signed within two weeks.

As announced last month, ChemChina will buy the 53 percent of MA held by the public for US$1.272 billion and pay Koor US$168 million for another 7 percent. The price per share is US$5.57, or 19.93 shekels, a share at the present exchange rate.

MA's shares closed up 1.3 percent at 18.28 shekels while Koor lost 0.3 percent to 89.24 shekels.

As part of the deal, ChemChina will arrange a seven-year non-recourse loan of US$960 million to Koor, which will be secured by Koor's shares in MA.

Analysts have said the loan guarantees for Koor a minimum price for the valuation of MA, also known as Makhteshim Agan, since in seven years it can choose not to pay back the loan and forfeit the shares.

In October Koor announced ChemChina was in talks to buy 70 percent of MA at a company valuation of US$2.7 billion but a month later the Chinese company sought to reduce the valuation to US$2.4 billion. The two sides also discussed ChemChina buying a smaller stake from Koor than originally planned.

Koor, which also owns 3.24 percent of Credit Suisse, is part of conglomerate IDB Holding Corp, which is controlled by businessman Nochi Dankner.

ChemChina President Jianxin Ren said on Sunday he and Dankner believed that together they can develop business opportunities in Israel, China and around the world.

"Our partnership has added significance because it can strengthen the economic ties between the State of Israel and the People's Republic of China in the fields of agriculture, chemical science and beyond," he said in a statement.

The deal, which is subject to various approvals, is expected to close in the second or third quarter.

"I am sure that the partnership between ChemChina and IDB will strengthen MA's global competitiveness and enable MA's manufacturing activity to remain in (the Israeli cities of) Be'er Sheva and Ashdod," Dankner said.

MA, which competes with Monsanto, Bayer and Syngenta, will become private.

ChemChina and Koor signed a shareholders' deal under which ChemChina will appoint a chairman for MA and Koor will name the vice chairman. They will work toward a public offering of MA's shares.