Agricultural chemicals and seeds supplier Nufarm says its purchase of a portfolio of European herbicides for cereal crops for about $US85 million ($A119 million) will boost its earnings.
The company is buying eight formulations based on four main active ingredients primarily used to control broadleaf weeds in cereal crops.
US-based FMC Corporation is selling the portfolio to meet the European Commission requirements related to FMC's acquisition of certain crop protection assets from DuPont.
Nufarm chief executive Greg Hunt says the portfolio is highly complementary to his company's existing products.
"The addition of these important herbicides further strengthens Nufarm's position in cereal crops, which is Europe's largest crop segment," he said in a statement.
Nufarm expects the acquired herbicides will contribute about $A30 million in sales and about $A15 million in earnings in the 2018/19 financial year, the first full year of its ownership.
The acquisition is subject to European regulatory approval but Nufarm expects to close the transaction in the next few months.
Nufarm shares dropped 13 cents, or 1.5 per cent, to $8.71.
