On Wednesday, the board of directors of BASF approved the scheme for amalgamation of Cynamid Agro Ltd (CAL) with the company effective January 1, 2001 being the appointed date.

The valuation had been done by CC Chokshi & Co and NM Raiji & Co. The share exchange ratio has been determined at two equity shares of BASF India Ltd of Rs 10 each fully paid up for five equity shares of CAL of Rs 10 each, fully paid up by the board of directors. Post merger the equity base would be Rs 28.189 crore. When contacted BASF chairman & managing director Prasad Chandran said: "Post merger, BASF India will rank fourth amongst the MNC's in the crop protection, from the current rank of seventh. Best of both companies staff will be retained in the operation."

He further added, "Both the companies manufacturing complementary products will be able to enhance market penetration through the larger distribution network thus resulting in higher market share. This merging will definitely lower the cost of production because of the common services and thereby hiking the productivity. We could foresee better export opportunities to diversify our network worldwide."