Nufarm is the eighth-biggest company in the estimated $30 billion crop protection market worldwide and competes with big brands such as Monsanto.

Nufarm's major product market is herbicides and its sales in 2006-07 were $1.8 billion, and analysts tip sales of $2.1 billion this financial year It manufactures in 14 countries.

The company says it has received a non-binding and conditional proposal from a consortium comprising China National Chemical Corporation, The Blackstone Group, and Fox Paine Management III, LLC.

ChemChina is the largest state-owned, diversified chemical enterprise in China with a significant focus on agricultural chemicals through its ChemChina Agrochemical Corporation subsidiary.

Nufarm says the proposal for 100 percent of shares involved a payment of $17.25 per share.

Additionally, Nufarm will pay a dividend of up to $0.30 per share based on the company's earnings and cashflow prior to the acquisition, for total consideration of up to $17.55 per share.

Nufarm says it expects that its earnings and cashflow prior to completion of the transaction will support the payment of the maximum $0.30 dividend per share.

The Board of Nufarm says it has thoroughly reviewed the proposal and would recommend shareholders vote in favour of the scheme.

The proposal of $17.25 per share and a dividend of up to $0.30 per share values Nufarm's market capitalisation at up to $3.0 billion.

The transaction would combine Nufarm with certain agricultural chemical businesses of ChemChina to create the global leader in off-patent crop protection.