US group Dow Chemical Company sold a share of Dow AgroSciences’ corn seed business in Brazil to CITIC Agri Fund, an investment fund controlled by the Chinese conglomerate CITIC, for US$1.1 billion the group said in a statement issued in Midland, Michigan.
The sale includes processing plants and seed research centres, a copy of the Brazilian plant germplasm bank, the Morgan seed brand and a license to use the Dow Seeds brand for a specific period.
According to the statement, the assets now sold to the Chinese fund had a turnover of US$287 million in 2016.
This transaction, which aims to comply with the divestment agreement signed with the Brazilian Administrative Council for Economic Defense (CADE) in order to be granted conditional authorisation for the proposed merger with DuPont, is conditional on the conclusion of the merger transaction between the two groups.
Dow Chemical Group Chief Executive Andrew Liveris is quoted in the statement as saying that this deal with the CITIC Agri Fund is another step in the regulatory approval process and is in line with the strategic logic and value creation potential of the merger with the DuPont group. (macauhub)