AFRICANGLOBE – America’s second-biggest seed company, DuPont Co. says it has completed the purchase of a majority stake (80 percent) in Africa’s largest producing seed company, Pannar Seed Ltd. after a nearly three-year battle with the country’s regulators.
DuPont Pioneer, a subsidiary of DuPont Co., first announced the purchase of South Africa’s Pannar in September 2010, but the South African Competition Tribunal blocked the deal. In May 2012, an Appeal Court overturned that decision and gave DuPont regulatory clearance.
Although financial terms were not disclosed, Paul Schickler, President of DuPont Pioneer, said it is one of the largest deals in the subsidiary’s history and DuPont’s largest investment on the African continent.
DuPont’s acquisition of majority ownership in Pannar will help it expand its chemical and seed access to new markets while bringing technological innovation to agriculture in Africa through research efforts and seed availability for farmers in Africa.
DuPont Pioneer and Pannar will partner to increase the pace and scope of research and innovation in the African seed industry, bringing farmers in Africa more product choices, faster and more efficiently than either company could do on its own.
It will also help expand the chemical and seed company’s access to new markets while boosting research efforts and seed availability for farmers in Africa, which has 86 million acres (35 million hectares) available for corn production.
The companies will also invest another $2 million to help farmers with small operations learn how to use hybrid seeds and adjust practices to get the best use of the new seed technology.
Pannar chairperson Brian Corbishley, said the partnership is a welcome news for its employees and for Africa as it will ensure a long-term growth while delivering improved products to farmers in South Africa and across the continent.
By: Oluwabusayo Sotunde