Dow to Sell Part of Corn Seed Business to CITIC Agri Fund

The Dow Chemical Company said it has entered into a definitive agreement with CITIC Agri Fund to divest a select portion of Dow AgroSciences’ corn seed business in Brazil for $1.1 billion.

The scope of the divestiture includes seed processing plants and seed research centers, a copy of Dow AgroSciences’ Brazilian corn germplasm bank, the Morgan seed brand and a license for the use of the Dow Sementes brand for a certain period of time. The assets being divested generated revenues in 2016 of approximately $287 million.

The divestiture is intended to satisfy Dow’s commitments to Brazil’s Administrative Council for Economic Defense (CADE) in connection with its conditional regulatory clearance of the proposed merger with DuPont. The divestiture will be conditioned on Dow and DuPont closing their merger transaction, in addition to other customary closing conditions, including approval of the divestiture transaction by CADE.

“Today’s announcement further advances the regulatory approval process, and maintains the strategic logic and value creation potential of our merger with DuPont and the three independent companies we intend to create,” said Andrew Liveris, Dow’s chairman and chief executive officer. “We believe this agreement serves the best interests of all stakeholders, including our shareholders, customers and employees. The combination of our portfolios, even with this divestiture, will create a much stronger Agriculture company with greater choice and innovation for growers around the world.”

The established assets involved in this local remedy are incremental to the previously announced divestment of certain parts of DuPont’s global crop protection portfolio and R&D pipeline and organization and Dow’s global Ethylene Acrylic Acid copolymers and ionomers business, consistent with commitments already made to the European Commission and regulatory agencies in other jurisdictions.

Both companies are working together for a seamless transition for all stakeholders.

Dow and DuPont continue to work constructively with regulators in the remaining jurisdictions to obtain clearance for the merger and are making progress in fulfilling the requirements of the conditional approvals that have already been received.

The merger transaction is still expected to generate cost synergies of approximately $3 billion and growth synergies of $1 billion, and both companies have reaffirmed their expectation to close the merger in August 2017, with the intended spin-offs to occur within 18 months of closing.

Source: Dow Chemical

Topics:

Agrichemicals

Agrichemicals

Seed Firms’ Changes Bring Uncertainty, Promises

The months ahead will reveal what these altered players will look like and how they’ll work with dealers and growers. They’ll also show where companies are focusing efforts in trait development and crop systems.

Agrichemicals

AMVAC’s Trogele: ‘Entire Downstream Channel of Our Industry Will Be Challenged’

AMVAC Chief Operating Officer Bob Trogele offered his insight on the current agrichemical environment, and on how retailers can possibly engage with post-patent companies.

Agrichemicals

Albaugh Enters Collaboration on New Wheat Varietites

Colorado Wheat Research Foundation, Inc., Albaugh, LLC and Limagrain Cereal Seeds, LLC have announced the release of the first two new herbicide-tolerant CoAXium Wheat Production System varieties.

monsanto roundup
Agrichemicals

Monsanto, Farm Groups Sue California Over Glyphosate Warning Requirement

Monsanto Co. says it has joined a coalition of U.S. farm groups in a lawsuit against the state of California to stop a requirement for cancer warnings on products containing glyphosate.

Agrichemicals

Arysta, DuPont Sign Fungicidal Seed Treatment Deal

Arysta LifeScience will supply to DuPont Crop Protection an innovative fungicide technology with an initial focus on corn and soybean seed applied products.

Agrichemicals

The Dicamba Factor to Weigh Heavily in 2018 Decisions

Other newer herbicides, too, are poised to expand growers’ options as weed resistance struggles show no signs of abating.

Agrichemicals

FMC Third-Quarter Profit Jumps on Americas Volume Growth

Third quarter segment revenue grew 6% year-over-year, excluding India.

Agrichemicals

EU Hits Deadlock on Glyphosate Reauthorization

The EU license for glyphosate is set to expire on Dec. 15.

Agrichemicals

Is it 2008 All Over Again? Chinese Supply Crunch Hits Crop Protection Players

Post-patent players, retailers seek out options and opportunities as the unknowns of supply constraints and consolidation from the Big 6 to the Big 3 take hold.

Agrichemicals

Nufarm to Acquire Portion of FMC’s Herbicides

Nufarm will acquire FMC's SU-class herbicides and Florasulam.

Agrichemicals

Arkansas Plant Board Votes to Adopt Dicamba Cut-Off Date

Changes will prohibit dicamba use in Arkansas between April 16 and Oct. 31.

Bayer
Agrichemicals

EU Restarts Clock on Bayer-Monsanto Deal Review

The European Commission has resumed its antitrust review of Bayer’s planned takeover of U.S. seed maker Monsanto after the companies

Adjuvants

Aqua-Yield Introduces New Herbicide Adjuvant

At only 4 oz./acre application rate, Aqua-Yield has introduced the industry game-changer, Nano-Pro. In university and field testing, Nano-Pro was

Rice Field
Asia

India Asks Germany to Resolve Early Fungicide Issue in Rice

India today asked Germany to address at the earliest the issue related to the tolerance level of fungicide tricyclazole in

Fungicides

Adama New Zealand Removes Mancozeb Cover Spray from Sale

Adama New Zealand, a member of Adama Group, a global crop protection leader, has reported it had pre-emptively recalled Mancozeb

Agrichemicals

Weak Brazil Volumes, Prices Hit DowDuPont Results

Additionally, an expected reduction in corn area in Brazil, as well as a delayed start to its summer season, impacted sales in the region.

Agrichemicals

ADAMA, Ceradis in R&D Crop Protection Agreement

Cooperation aims to increase the performance of active ingredients while lowering dose rates by integrating Ceradis’ technology in ADAMA’s products.

Agrichemicals

Some Pesticide Prices Climb 30% in One Month

In just one month, the price of glyphosate technical shot up from $3,614/MT to $4,066/MT, while glufosinate-ammonium increased from $24,849/MT to $26,355-27,108U/MT, according to China-based firm Siembo Consulting Co. Ltd.

Agrichemicals

FMC Corp. Completes Transformative Transactions with DuPont

FMC has acquired the portion of DuPont's Crop Protection business it had to divest to comply with the European Commission ruling related to its merger with The Dow Chemical Company.

Latest News

Agrichemicals

Seed Firms’ Changes Bring Uncertainty, Promises

The months ahead will reveal what these altered players will look like and how they’ll work with dealers and growers. They’ll also show where companies are focusing efforts in trait development and crop systems.

Asia

Naidu: India Needs Multi-Pronged Approach to Agriculture

Indian Vice President M Venkaiah Naidu has called for a comprehensive, multi-pronged approach to agriculture with focus on crop diversification

Agrichemicals

AMVAC’s Trogele: ‘Entire Downstream Channel of Our Industry Will Be Challenged’

AMVAC Chief Operating Officer Bob Trogele offered his insight on the current agrichemical environment, and on how retailers can possibly engage with post-patent companies.

Agrichemicals

Albaugh Enters Collaboration on New Wheat Varietites

Colorado Wheat Research Foundation, Inc., Albaugh, LLC and Limagrain Cereal Seeds, LLC have announced the release of the first two new herbicide-tolerant CoAXium Wheat Production System varieties.

Agrichemicals

Monsanto, Farm Groups Sue California Over Glyphosate Warning Requirement

Monsanto Co. says it has joined a coalition of U.S. farm groups in a lawsuit against the state of California to stop a requirement for cancer warnings on products containing glyphosate.