* Q3 net loss ex-items $22.7 million, vs $23 million loss forecast
* Q3 revenue $533 million, vs $526 million forecast
* Analysts say sale to ChemChina necessary
* Shares down 1.8 percent
(Recasts, adds detail, analyst comment, shares)
By Steven Scheer
JERUSALEM, Nov 23 (Reuters) - MA Industries, one of the world's largest makers of generic crop protection products, posted a wider quarterly loss, which analysts said underscored the need for it to be bought by China National Chemical Corp.
Israel-based MA said talks with ChemChina to buy a controlling stake and take the company private were continuing but there was no certainty a deal would be reached.
But with MA posting another poor quarter, hit by a write down at its Brazilian unit, rising costs and a one-off tax charge, analysts said it was imperative that MA's parent, holding company Koor Industries, make a deal.
"The strategic necessity in selling the company to ChemChina seems clearer than ever," said Gilad Alper, an analyst at the Meitav brokerage.
Initially, ChemChina sought to buy 70 percent of MA at a value of $2.72 billion. But on Sunday, Koor -- which holds 47 percent but would lower its stake to above 30 percent in the deal -- said ChemChina wants to reduce the valuation to $2.4 billion, or 20.3 shekels per share.
By 1258 GMT MA's shares were down 1.8 percent at 16 shekels.
MA posted a third-quarter net loss of $56.2 million, compared with a loss of $17.5 million a year earlier. Revenue grew 22 percent to $533 million, with sharp gains made in Latin America and Asia Pacific and an 8 percent rise in Europe, its largest market.
MA last week said it planned to buy a company in Mexico while acquiring a controlling stake in a South Korean firm to further expand into Asia and South America.
Excluding one-off items largely related to the restructuring of Brazilian subsidiary Milenia, MA lost $22.7 million.
Also known by its former name, Makhteshim Agan, the company was forecast to record a net loss of $23 million on revenue of $526 million, according to a Reuters poll.
MA, the world's No.7 agrochemicals maker, said last month it would post a wider third-quarter loss than in the 2009 period but did not give a figure. It also said revenue would be about 20 percent higher.
"The restructuring of our Brazilian operation weighs on our business performance," Chairman Avraham Bigger said. "However, we are confident that once it is completed we will be able to improve our competitive positioning in this important market while enhancing our profitability."
Bigger said he planned to step down as chairman at the end of the year after four years on the job. No reason was given.
Citi analyst Andrew Benson said he expects MA to take charges of about $60 million in the fourth quarter to cover the cost of rationalisation measures in Israel to get the business into a shape consistent with concluding a deal with ChemChina.
"We believe MA is likely to be taken over by ChemChina at or somewhat above 20 shekels a share," Benson wrote in a note.
Yoav Burgan, head of sell side research at Poalim Sahar, said he expected a fourth-quarter loss steeper than the $30 million MA recorded last year.
"From a seasonal standpoint, the fourth quarter has turned into a sort of 'fiscal garbage can', and is concentrated with write-offs and accounting provisions," he said. ($1 = 3.64 shekels) (Additional reporting by Tova Cohen; Editing by Jon Loades-Carter)