ChemChina Taps JPMorgan for Dow Chemical Unit Bid

China National Chemical (ChemChina), China's leading chemical producer, has retained JPMorgan to advise it on a bid for Dow Chemical's agrosciences unit, sources said on Monday.

Dow AgroSciences — which sells crop protection chemicals such as herbicides and insecticides — booked 2008 sales of $4.5 billion, according to the company's website.

The unit could be sold for as much as $7 billion, analysts said.

Dow Chemical , the largest U.S. chemicals maker, is selling assets to to help pay a $9.2 billion bridge loan talen out to buy chemical company Rohm & Haas in April.

Like other chemicals makers, Dow has been suffering from the economic recession and has already sold Rohm's Morton Salt unit for $1.7 billion and is evaluating options for other businesses in its portfolio.

It is unclear if the bidding process for the agrosciences unit is at a preliminary or advanced stage.

In March, Dow Chemical chief executive Andrew Liveris told Reuters the company would not be forced into selling assets on the cheap.

"We've designed a structure where we can control our own destiny, rather than be forced to fire-sale," Liveris said at the time.

"More critically, we can retain very key assets like Dow AgroSciences and Dow Corning," said Liveris, adding Dow would consider selling a stake in Dow AgroSciences business if there were strategic benefits from the deal.

JPMorgan declined to comment. ChemChina was not immediately available for comment. The sources declined to be named because they were not authorized to speak publicly about the matter.

In late February, media reports said private equity giants Blackstone and Kohlberg Kravis Roberts were in early-stage discussions about taking a multibillion-dollar minority stake in the division.

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