Sector News

Dow to sell hybrid corn seed assets in Brazil for $1.1 billion

July 12, 2017
Energy & Chemical Value Chain

Dow Chemical announced on Tuesday that it has agreed to sell a portion of its hybrid corn seed business in Brazil to CITIC Agri Fund. The sale will allow Dow to secure Brazilian antitrust approval for its pending merger with DuPont, the company says.

Under the terms of the definitive agreement, CITIC is paying $1.1 billion for seed processing plants, 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 period of time. These assets generated sales of about $287 million in 2016.

The sale is conditional upon merger close, which Dow still expects by the end of August, and approval of the deal by Brazil’s Administrative Council for Economic Defense. Dow says the assets in question are “incremental” to previously announced regulatory remedies, namely the divestitures of certain DuPont crop protection assets and related R&D to FMC and of Dow’s worldwide ethylene acrylic acid copolymers and ionomers business to SK Global Chemical (Seoul, South Korea).

Dow and DuPont expect to separate into three independent, pure-play companies within 18 months of the merger’s close. These companies will include a materials science company, an agriculture company, and a specialty products company.Andrew Liveris, Dow’s chairman and chief executive officer, says the CITIC deal advances the regulatory approval process and maintains the “strategic logic and value creation potential” of the merger and split. “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 companies have also received clearance from China, Europe, and the US, and are working constructively with regulators in the remaining jurisdictions. Dow and DuPont expect cost synergies of approximately $3 billion and growth synergies of $1 billion.

By Rebecca Coons

Source: Chemical Week

comments closed

Related News

July 14, 2024

Europe ethylene spot prices turn firmer on demand, feedstock, looming cracker turnarounds

Energy & Chemical Value Chain

European ethylene spot prices have firmed week on week on the back of better-than-expected demand amid higher feedstock values and an increasing focus on upcoming planned cracker maintenance outages. Spot deals this week have been reported at discounts of 32-35% on the pipeline, prior deals had been at discounts of around 38-39%.

July 14, 2024

Marcel Imwinkelried appointed new Siegfried CEO

Energy & Chemical Value Chain

He will succeed Reto Suter, who has led the Siegfried Group as CEO ad interim since the departure of Wolfgang Wienand on May 1, 2024. Suter will now focus on his role as Chief Financial Officer for Siegfried. Wienand will become CEO of Swiss competitor Lonza.

July 14, 2024

Honeywell acquires Air Products’ LNG technology, business for $1.8B

Energy & Chemical Value Chain

Honeywell Inc. (Charlotte, North Carolina) has reached agreement to acquire Air Products’ (Leigh Valley, Pennsylvania) liquefied natural gas process technology and equipment business for $1.81 billion. The deal is expected to close before the end of the year. The price represents a multiple of 13 times the unit’s estimated 2024 EBITDA.

How can we help you?

We're easy to reach