Chinese company Yuan Longping High-Tech Agriculture Co. and the CITIC Agri Fund have concluded the purchase of Brazilian company Dow AgroSciences Sementes, which has been transformed into LP Seeds, according to information provided at a meeting with the press in Ribeirão Preto (state of São Paulo).
The event was attended by the consul-general of China in São Paulo, Song Yang, who said that in 2016 Chinese companies imported Brazilian agricultural products worth US$20.8 billion, or about 24.5% of all Brazilian exports of these products.
“China and Brazil are highly complementary. In agriculture, China has a shortage of soy, cotton and dairy products, Brazil is known as the breadbasket of the 21st century world, so it can ensure a stable and efficient supply,” said Song Yang, quoted by the Brazilian press.
The deal announced in July of last year and which represented an investment of US$1.1 billion, includes the purchase of the assets of Dow AgroSciences Sementes e Biotecnologia Brasil Ltda., full access to the maize germplasm bank of Brazil, the Morgan brand and the license for use of the Dow Sementes brand for a period of 12 months.
With the seed assets of Dow AgroSciences, LP Sementes starts operating in Brazil with a share of 18.5% of the Brazilian corn seed market, in third place on the national list.
LongPing is a global leader in hybrid rice and also has a hybrid maize, wheat, vegetable and other agricultural product businesses.The launch of LP Seeds is part of the group’s international expansion strategy, according to a press release. (macauhub)