Syngenta to acquire Nidera Seeds from COFCO

54858989-e714-4fa2-9abd-6350f4ae0950articleimage.jpg

06 Nov 2017 --- Swiss agri-business and Chinese grains trader China National Cereals, Oils and Foodstuffs Corporation (COFCO) have announced that Syngenta has entered into a binding agreement to acquire Nidera Seeds. The Chinese-state owned food processing holdings company COFCO International is the country’s largest food processor, manufacturer and trader. It focuses on corn, sunflowers, sorghum, soybeans and wheat.

Nidera BV is a Dutch subsidiary which was originally acquired when COFCO bought 51% of the shares in 2014.

Now three years on, COFCO has agreed to sell the business to Syngenta for an undisclosed amount as terms of the binding agreement have not been revealed. 

COFCO divesting the seeds business 
As part of a comprehensive expansion of its international grains trading business, COFCO completed a full takeover of Nidera earlier this year. 

However, according to reports in Reuters, Nidera has been experiencing losses and accounting issues which led the company to begin looking at ways to divest parts of the business. 

“This agreement is an important step in our strategy to focus on our major businesses,” said Johnny Chi, Chief Executive Officer of COFCO International. 

“Syngenta is well placed to provide Nidera Seeds a strong platform for further long-term growth, creating the best value for its customers, farmers and employees.”

Completion of the transaction is subject to clearance by the relevant merger-control authorities and regulatory clearances. 

The global seeds business is going through a serious shake-up right now with fellow Chinese-state owned corporation ChemChina (China National Chemical Corporation) going through a US$43 billion takeover of Syngenta earlier this year. 

Meanwhile, other large-scale mergers include the Dow and DuPont mega-merger, which was completed in September in a deal worth US$130 billion.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Business News

Givaudan sales rise in H1, but profits impacted by foreign currency losses

23 Jul 2018 --- Leading flavor & fragrances supplier Givaudan has reported that sales for the first six months of the year were CHF2.67 billion (US$2.70 billion), an increase of 5.6% on a like-for-like basis and 7.7 percent in Swiss francs. But the company saw its first-half profit slip 3.4 percent as foreign currency losses in countries including Argentina dented its results.

Business News

Extended shelf-life tomatoes: Arcadia and Shriram reach milestone

23 Jul 2018 --- Arcadia Biosciences, Inc., an agricultural food ingredient company, and Shriram Bioseed, a leading research and hybrid seed development company, have announced the achievement of a key milestone in developing extended shelf life (ESL) tomatoes. Bioseed has field tested Arcadia’s ESL technology in multiple tomato hybrid backgrounds in multiple locations and seasons. Significant and consistent improvements in field yield and fruit quality, such as firmness, shelf-life and color development, were observed. These new hybrids are in the pre-commercial, wide area field testing stage with anticipated launch in 2019.

Business News

The consolidating ingredients sector: Ingredion convergence epitomizes a tightening sector

23 Jul 2018 --- The integration of several portfolios into a single larger ingredient entity was a key theme at the IFT 2018 Food Expo in Chicago last week. The relatively small trade show floor was a reminder of how many previous exhibiting companies have been swallowed up over recent years, in order to be integrated into the likes of DSM (e.g. Martek, Ocean Nutrition Canada and Fortitech), Kerry (e.g. Ganeden, Red Arrow and Biothera), ADM (Wild Flavors) and IFF (Ottens Flavors and David Michael). Naturex (currently being acquired by Givaudan) could be the next to disappear from a show floor, amid a consolidating ingredients world, where questions must soon be raised about a growing lack of competition and diversity in ultimate holding companies.

Food Ingredients News

Healthy snacking and low-sugar trends boost versatile dried fruits, nuts and seeds use

23 Jul 2018 --- There has been a jump in new product development for better-for-you snacks driven by health-conscious consumers searching for satiating healthy food that tastes good, can be eaten on-the-go and is low in sugar. Companies are finding success in the “snackable” dried fruit, nuts and seeds category where produce is packaged into convenient individual items and snacks are being redefined as somewhere between healthy and indulgent.

Food Ingredients News

Sensient execs on Mazza buy: “We want to take everything out of the botanical”

20 Jul 2018 --- Sensient is eyeing the newly acquired botanical extraction company Mazza Innovation as a strategic pillar for all of its business operations, including colors and flavors. Presented under the new name of “Sensient Natural Extraction” and continuing to operate out of Canada, the new business unit provides a clean extraction opportunity for Sensient Technologies Corp. The acquisition will offer opportunities in sustainability, cost reduction and clean label, as the entire botanical being used can be broken down and distributed among the diverse companies that comprise Sensient.

More Articles