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

Food Ingredients News

Export breakthrough: First Dutch veal en route to China after 17-year negotiations

17 Oct 2018 --- After more than 17 years of negotiation, the Chinese market is finally open to Dutch veal. Ekro, the subsidiary of the VanDrie Group, has become the first European veal slaughterhouse to receive approval to export veal products to China.

Food Ingredients News

Global Food Security Index: Singapore claims top spot as US and UK drop to third place

17 Oct 2018 --- The agriculture division of DowDuPont, Corteva Agriscience, and The Economist Intelligence Unit (EIU) have released the 2018 Global Food Security Index (GFSI) findings which signal a shift toward more resilient food security measures. For the first time, Singapore claims the top spot in the 2018 GFSI ranking, partly because GDP per capita has risen nearly 30 percent since 2012, while the percentage of household expenditure that is spent on food is 6.9 percent.

Business News

Indian expansion: Nexira and Synthite reinforce partnership in world’s largest acacia gum market

17 Oct 2018 --- French-headquartered acacia gum world leader, Nexira and India-based spice oleoresins leader, Synthite have entered a partnership to produce acacia gum at Synthite’s manufacturing plant near Coimbatore in Tamil Nadu, southern India. This partnership augurs well for India – the world’s largest consumer of acacia gum – by offering various product references to food & beverage manufacturers, who use this gum widely for its technological and nutritional benefits.

Food Ingredients News

Irish Minister launches dairy research center, reinforces commitment to agri-food sector

16 Oct 2018 --- The Irish Minister for Agriculture, Food and the Marine, Michael Creed TD, has launched the new VistaMilk SFI Research Centre which is jointly funded by Science Foundation Ireland (SFI) and his department. The VistaMilk Centre will be hosted by Teagasc Moorepark (Co. Cork), in partnership with a number of research performing organizations, multinational and SME companies in the food sectors are also part of the consortium.

Food Ingredients News

Beer shortages? Study reveals climate change could affect global beer supply

16 Oct 2018 --- Severe climate events could cause shortages in the global beer supply, according to new research involving the University of East Anglia (UEA). The study warns that increasingly widespread and severe drought and heat may cause substantial decreases in barley yields worldwide, affecting the supply used to make beer. This will ultimately result in “dramatic” declines in beer consumption and rises in beer prices.

More Articles