The top shareholder in Makhteshim-Agan Industries has agreed terms on a $2.4bn deal which will see ChemChina take control of the world's top maker of generic agrichemicals.

Koor Industries, which owns approaching 50% of MA Industries, revealed a breakthrough in longstanding talks on a "strategic co-operation" with ChemChina, the Chinese chemicals group, after both sides agreed to lock-in periods.

The smallprint of the proposed deal obliges ChemChina to remain the largest shareholder in Israel-based MA Industries "for a number of years", while investment group Discount Investment Corporation has committed to being Koor's controlling investor for at least three years.

Furthermore the deal - struck at an MA Industries share price of 19.98 shekels, lower than the 22 shekels outlined when negotiations were revealed in October – will see ChemChina provide a $960m loan to Koor, secured against shares in the agrichemicals group.

Tuesday's deal values Koor's retained stake in MA Industries at about $960m.

Shareholder doubts? 

The agreement, which is expected to be signed within two weeks, envisages MA Industries being taken private, with ChemChina owning 60% of the group, and Koor keeping about 40%.

However, an agreement also requires approval at an MA Industries shareholder meeting, as well as the support of Chinese regulators.

ChemChina would gain most of its stake from buying out MA Industries' public shareholders, with only a 7% holding purchased from Koor.

MA Industries shares  closed at 18.04 shekels in Tel Aviv, up 6.8% but remaining well short of the potential offer price, a sign that investors retain doubts over whether the deal will succeed.

ChemChina three years ago pulled out of a takeover of Australia's Nufarm without explanation.

MA Industries stock stood at 13.40 shekels before the ChemChina talks were revealed in October.