Chinese grain operator COFCO International has agreed to sell its seed business in Latin America to Syngenta as part of its efforts to restructure its activities after a series of major acquisitions abroad, the two companies announced today.
The financial terms to sell Nidera Seeds were not disclosed but the Swiss-based spokesman for Syngenta said he expected regulatory processes to be completed by the end of the year or early 2018.
Chinese state COFCO’s plan to sell its seed business was reported by Reuters in August and is the latest step in its integration of Dutch operator Nidera.
“This agreement is an important step in its strategy to focus on our core business,” said Johnny Chi, CEO of COFCO, in a statement.
The company invested more than 3,000 million dollars in buying Nidera and Noble in the last three years, which allowed it to enter the group of multinationals that operate agricultural products.
COFCO International was officially launched in April this year to combine its operations abroad, but the losses inherited from Nidera caused uncertainty regarding its short-term prospects.
The Chinese group embarked on a restructuring of its business in Europe and South America.
Nidera’s seed business is concentrated in Argentina and Brazil and the company has a network with activities in neighboring countries, according to the COFCO International website. The firm is focused mainly on the commercialization of corn, sunflower, sorghum, soybeans and wheat.
Nidera Seeds represents the entire seed business of COFCO International, a spokesperson said.