UPL rallies on completing acquisition of Yoloo (Laoting) Bio-technology

UPL rose 3.89% to Rs 362.50 after the company said it completed the acquisition of Yoloo (Laoting) Bio-technology Co, which was announced on 14 November 2019.

UPL after market hours on Monday (27 April) confirmed the completion of acquisition of Yoloo (Laoting) Bio-technology Co. ('Laoting Yoloo'), that was announced on 14 November 2019, post all customary and regulatory approvals and the transaction is closed.

In November 2019, UPL, through its step-down overseas subsidiary, entered into definitive agreements to acquire 100% shares of Laoting Yoloo, an agrochemical company based in Heibei Province, China, from Beijing Yoloo Bio-Technology Corp., ('Beijing Yoloo'). In the subsidiary, UPL will own 75% stake and Beijing Yoloo will hold 25% stake.

Laoting Yoloo is engaged in the business of manufacturing, distribution and commercialization of crop protection products in China. China is one of the major crop protection chemical market and with this acquisition UPL will strengthen its access in China market. UPL will build on the relationships that Laoting Yoloo has cultivated by serving their existing customers with the wider portfolio of UPL products. With this acquisition, UPL will also have a formulation facility in China.

On the technical front, the stock's RSI (relative strength index) stood at 50.233. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 20-day moving average (DMA) and 50-day moving average (DMA) placed at Rs 334.39 and Rs 421.03 respectively.

UPL manufactures and markets agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals, and also offers crop protection solutions.

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