ISLAMABAD: United Distributors Pakistan Limited (UDPL) has entered into a non-compete arrangement with FMC Corporation, under which the US-based firm has paid UDPL $6 million as consideration.
UDPL, which is engaged in the manufacturing of pesticides and fertilizers, announced the deal in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.
“We hereby inform you that United Distributors Pakistan Limited (UDPL) and FMC Corporation, a company incorporated under the laws of the State of Delaware (FMC Corp), have entered into a non-compete arrangement in respect of certain business activities overlapping with the business activities of FMC Corp and FMC United (Private) Limited. In consideration of UDPL entering into such arrangement, FMC Corp has agreed to pay a consideration of $6 million, which amount has now been received by UDPL,” the notice read.
Following the announcement, UDPL’s share price rose to Rs93.95, an increase of Rs5.99 or 6.81%.
UDPL, which was founded in 1981, initially worked as a distribution partner for global agricultural companies including Dow Agri Sciences, FMC, and Pioneer. The company later became a joint venture partner for FMC and Pioneer in 1991, helping to grow the businesses of both companies without having local subsidiaries.
FMC Corporation, an American chemical manufacturing company headquartered in Philadelphia, Pennsylvania, originated as an insecticide producer in 1883 and later diversified into other industries.
