Sinochem Corp (Sinochem), the country's leading agrochemicals producer, yesterday said it agreed in principle to buy Australia's Nufarm Ltd for A$2.8 billion, in a move to expand its farm chemicals business overseas.

Sinochem yesterday signed agreements with Nufarm, under which the company would offer A$13 per Nufarm share, the Australian company said in a statement. The price is a near 17-percent premium to Nufarm's last traded price.

The acquisition of Nufarm, should it proceed, is consistent with Sinochem's strategy to become a leading global company in the total crop protection value chain including research and development, production, distribution and services, Sinochem added.