ARM, which is a division of China’s state-owned China General Chemical Group, said it would sell $8 per share in its U.S. market-trading platform, LTV, to TSX-listed Commodities Unlimited, for $1.07 per share.

TSXV, +0.35% ARM is the second-largest U.K. exporter of chemicals after BHP Billiton.

Commoditas has a market cap of $1 billion.

LTV shares have lost nearly 20% this year, and ARM lost more than 11% last year, according to data from research firm Gartner.

Commodes shares fell more than 15% in premarket trading.

ARM, a maker of medical devices and pharmaceuticals, has been investing in robotics and automation.

The company said in a statement that LTV’s sale was “the final step in its plan to diversify its business into high-value commodity markets, including energy and consumer goods, as well as into new areas of technology, such as blockchain and smart cities.”

ARM said the merger will provide a “massive, strategic and diversified asset class” and that the combined company will be “highly profitable and strategically strong.”

“We will continue to drive growth through our core products and services, as we strive to drive innovation and build on our lead in the growing area of the energy, pharmaceutical and consumer products markets,” ARM chief executive officer Rong Xu said in the statement.

Commode’s shares fell 0.4% in after-hours trading.

The combined company was founded in 2003 by Chinese billionaire Li Xiaolin, who became China’s first billionaire in 2015.

Commoda reported $1,000 million in revenue in 2017.

ARM declined to comment.

TSYX-VIL, +1.22% Commodites was created in 2016 by two former TSX members, former Citigroup chairman Eric Schmidt and former Morgan Stanley chief executive David DeMarco.

Commods shares fell 6% in 2017 after a record $7.6 billion sale.