Syngenta Buys COFCO’s Crop Seeds Business
Chinese-owned, Switzerland-based agrochemicals giant Syngenta has announced plans to acquire state-owned Chinese grains trader COFCO International’s crop seeds business for an undisclosed sum. The international arm was officially launched in April of this year to combine the overseas trading activities.
According to Reuters, the Chinese firm spent more than $3 billion buying Dutch trader Nidera Seeds, along with Noble Agri, over the past three years, which enabled it to move into the league of multinational agricultural traders.
Nidera operates mainly in Latin America, with the most important activities in Argentina and Brazil. Its focus is on corn, sunflower, sorghum, soybean and wheat seeds.
The sale “is an important step of our strategy to focus on our major businesses,” said Johnny Chi, chief executive of COFCO International. He said Syngenta is “well placed to provide Nidera Seeds a strong platform for further long-term growth.”
Completion of the transaction is subject to clearance by the relevant antitrust authorities. Syngenta told the news agency Reuters it hopes to obtain all regulatory approvals by the end of 2017 or early 2018.
In other Syngenta news, the agrochemicals group’s US subsidiary, based in the Research Triangle area of North Carolina, has obtained a non-exclusive license from the Broad Institute of MIT and Harvard to use CRISPR-Cas9 genome editing technology for agricultural applications.
The Swiss group said it will use the technology, which enables scientists to make genetic changes in an organism, to edit genes in various crops, including corn, soy, wheat, tomato, rice and sunflowers.
“Gaining access to CRISPR-Cas9 technology will allow us to accelerate the rate of innovation in the development of new plant varieties and bring novel traits into the hands of growers faster and with greater efficiency,” said Michiel van Lookeren Campagne, global head of seeds research at Syngenta.
Syngenta employs around 500 people in the Research Triangle.
