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, engaged in the manufacturing of pesticides and fertilisers, said in its 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,” read the notice.
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Following the announcement, the share price of UDPL jumped to Rs93.95, an increase of Rs5.99 or 6.81%.
According to information available on the UDPL website, the company came into existence in 1981. Initially, UDPL worked as a distribution partner of global Ag companies and Dow Agri Sciences, FMC, and Pioneer. Later on, UDPL became a joint venture partner for FMC and Pioneer in 1991 and helped to grow the business of both companies without having local subsidiaries.
Meanwhile, FMC Corporation is an American chemical manufacturing company headquartered in Philadelphia, Pennsylvania, which originated as an insecticide producer in 1883 and later diversified into other industries.
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