Chinese grains trader COFCO International has agreed to sell the seeds business of Dutch subsidiary Nidera BV to Chinese-owned global crop chemicals firm Syngenta AG.
International grain trader COFCO International, which traded in 35 countries, sold the Dutch subsidiary Nidera Seeds to Sygenta, which focuses on crop chemicals. In the statement made, this sale was described as a strategic step of the Chinese government-owned company. Financial terms of the agreement, which is subject to regulatory clearances, were not disclosed. “This agreement is an important step of our strategy to focus on our major businesses,” said Johnny Chi, chief executive of COFCO International. “Syngenta is well placed to provide Nidera Seeds a strong platform for further long-term growth, creating best value for its customers, farmers and employees,” he added.
The deal is considered to be a part of an ongoing shake-up in the global seeds business. Syngenta was itself acquired this year by Chemchina, which is another state-owned Chinese firm. It has said it would pursue deals to become the third-biggest player in the seeds industry.
Nidera’s seed business is concentrated in Argentina and Brazil, with a network in neighboring countries, according to Cofco International’s website. It focuses on corn, sunflowers, sorghum, soybeans and wheat.
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