Chinese grains and foodstuffs trader COFCO International has entered into an agreement to sell the seeds business of its Dutch subsidiary Nidera to global agrichemicals firm Syngenta.
COFCO acquired Nidera only this February as part of its bid to expand its global grains trading business but accumulating losses from Nidera, alongside accounting issues at its Latin American operation, drove COFCO to start looking into divesting parts of the business, Reuters wrote on 6 November.
Financial terms of the agreement were not disclosed and the deal was subject to regulatory clearances, the news agency said.
The sale was part of the ongoing slew of acquisitions in the global seeds business, which saw Syngenta itself acquired by Chinese state-owned ChemChina, which has said that it would pursue deals to become the world’s third largest company in the seeds business.
Nidera’s seed operations – focusing on corn, sunflower, sorghum, soya and wheat – were based in Argentina and Brazil with a network of offices in neighbouring countries, COFCO said.