Subject to approval by anti-trust authorities in Argentina, Bayer CropScience will pay an undisclosed sum to acquire Buenos Aires-based Biagro Group, a producer and distributor of biological seed treatment solutions.

The portfolio of the company established in 1984 includes seed-applied inoculants, plant growth-promoting microorganisms and other products for integrated pet management based on bacterial and fungal strains.

Part of its plans to further expand its seeds business, Bayer CropScience, said Biagro's product range will be a "valuable addition" to its portfolio and "substantially improve soybean productivity."

Eduardo Estrada Whipple, head of the region Latin America at the sub-group of German chemical and pharmaceuticals giant Bayer, said he sees a strong global demand for soybean meal, used primarily in animal feed.

The U.S., Brazil and Argentina make up around 80% of global soybean production. Bayer CropScience said it is "striving to become an important business partner for soybean growers." The Biagro takeover will give it a leg-up in Argentina.