The Nufarm board today decided Sinochem's revised offer of $12 a share (down from its original offer in late September of $13) undervalued Nufarm and that some of the numerous conditions sought by Sinochem were "unacceptable".

It said Sinochem's proposal also remained subject to the uncertainty of regulatory approvals by both Chinese and Australian authorities.

Nufarm has instead progressed an "attractive" proposal from Sumitomo Chemical Corporation to acquire up to 20 per cent of Nufarm's ordinary shares for $14 a share and to enter into an agreement to co-operate over a number of business areas.

Nufarm has been hard hit by the freefall of the price of key agricultural chemical prices over the past 12 months, which have hurt its share price.

However, early reaction to the Sumitomo deal, flagged on Tuesday, has been positive, with a 5.1pc rise in share price on Tuesday morning, after the news was announced, to $11.