* Sinochem bids $2.5 bln for Nufarm
* Deal subject to Australian foreign investment approval
* Sinochem offering 17 pct premium (Adds details)
SYDNEY, Sept 28 (Reuters) - Chinese state-owned firm
Sinochem has agreed in principle to buy Australian farm
chemicals group Nufarm Ltd
Nufarm said on Monday it had signed a heads of agreement with Sinochem whereby the Chinese firm would offer A$13.00 per Nufarm share, a near 17 percent premium to Nufarm's last traded price.
The deal is subject to due diligence and regulatory approvals, including consent from Australia's Foreign Investment Review Board which has stymied at least two major Chinese investments in Australia this year on national interest grounds.
The main attraction for Sinochem is Nufarm's global distribution network, which includes businesses in Asia, South America and Europe, analysts have said.
"The execution... is subject to Sinochem being satisfied with the results of its due diligence enquiries and approval by Sinochem and the Nufarm board," the Nufarm statement added.
Nufarm said there was still no certainty a deal would proceed, despite its support for the heads of agreement.
It is the second time Nufarm has received an approach from
a Chinese firm in two years. In 2007, China National Chemical
Corp, China's leading chemical producer, led a A$3 billion
approach with U.S. private equity firms Blackstone Group
Nufarm is being advised by UBS, while the Royal Bank of Scotland is advising Sinochem. (Reporting by Denny Thomas; Editing by Mark Bendeich)