Nufarm Ltd., an Australian supplier of agricultural chemicals, agreed to take full control of Brazil's Agripec Quimica e Farmaceutica SA to expand sales in the world's largest sugar producer and second-largest soybean grower.

Nufarm will pay $350 million Reais ($173 million) for the 50.1 percent stake in the South American nation's largest locally owned crop protection company, the Melbourne-based company said today in a statement to the Australian Stock Exchange. Nufarm bought 49.9 percent of Agripec in 2004.

Expanding in Brazil will further diversify earnings from Australia, the world's third-largest wheat exporter and second- largest canola shipper, buffering profit from adverse weather conditions such as drought in either country. Output of wheat, Australia's biggest grain crop, has plunged by more than half twice this decade because of drought.

``Brazil represents one of the most exciting agricultural growth markets,'' Managing Director Doug Rathbone said in the statement. ``Stronger commodity prices and forecasts of increased planting areas for the next two years will see the business generate very acceptable profitability levels.''

Shares of Nufarm gained 19 cents, or 1.5 percent, to A$13.28 on the Australian Stock Exchange at the 4:10 p.m. close in Sydney. They have risen 28 percent this year, almost triple the 10 percent rise in the S&P/ASX 200 Index.

Debt Funded

Agripec had net sales of $350 million Reais in 2006, the statement said. It holds an 8 percent share of the Brazilian market, the world's second-biggest buyer of crop herbicides and pesticides, Nufarm said. More than 60 percent of its sales are to soybean growers, Brazil's largest crop, it said.

The purchase will be funded with debt, Nufarm said.

Nufarm sells chemicals used to control weeds in crops including oilseeds, sugar, peanuts, grapes, grains and vegetables. It also sells chemicals used to control pests such as locusts, according to its Web site.

The company's sales to the Americas rose 20 percent last year, taking the region's share of the company's total sales to 32 percent. Australia and New Zealand accounted for 45 percent of sales and Europe made up 23 percent.

``The purchase of Agripec will give Nufarm a valuable platform on which to develop new business opportunities in South America,'' it said.

(Published by Bloomberg, May 3, 2007)