China’s largest planned takeover of an Australian company took a big step forward on Monday when Sinochem launched a A$2.8bn (US$2.4bn) cash offer for Nufarmagricultural chemicals maker.

Sinochem, a Chinese chemicals trading business, has been courting Nufarm for months and the parties have now agreed to hold exclusive talks on a A$13-a- share deal while it conducts due diligence until early December.