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An Argentine seed company continues to expand: it bought the corn and wheat business of a multinational

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National plant genetics company GDM continues to expand: it announced today the acquisition of the corn and sorghum operations of the German company KWS in South America.

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The transaction includes all KWS corn and sorghum breeding and sales activities in South America (Brazil, Argentina, Paraguay and Uruguay), as well as all corn and sorghum production sites in Brazil and corn production sites in Argentina, involving approximately 700 collaborators.

GDM was born in Chacabuco 42 years ago, and operates in 15 countries, with a total of 1,800 employees. For its part, KWS is one of the world’s leading seed improvement companies. With more than 5,000 employees in more than 70 countries, it generated net sales of approximately €1.8 billion in the 2022/2023 fiscal year.

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As indicated by the GDM company in the official press release, the incorporation of KWS’s position and know-how in corn, together with the acquisition of Biotrigo in 2023, consolidates it as a relevant company in extensive crops in South America.

“Combining KWS’s position in corn with GDM’s knowledge in plant genetics, with a focus on soybeans and wheat, creates a unique synergy and strength for our market position and the continued progress of our company,” said Ignacio Bartolomé, CEO of GDM.

We will continue to work in close relationship with the entire agricultural supply chainwith the aim of continuing to provide the latest advances in technology applied to plant genetics, with the producer at the center and yield as the central objective”, added Bartolomé.

GDM reported that it will continue and strengthen the activity developed by KWS, highlighted for its agronomic characteristics. All vegetable and sugar beet operations and counter-seasonal breeding programs of the European maize and sugar beet portfolio in Brazil, Chile and Peru will remain the property of KWS, and KWS’ European maize business will not be affected by the transaction.

“In South America, We have established a strong position in the corn market, which we are very proud of. However, to implement KWS Group’s strategic goals with full strength and focus, we have decided that this is the right time, in terms of business maturity, to find a partner who is in a strong position to lead the corn business in America. from the South to the next level. We are fully convinced that GDM is the right choice, both from a cultural point of view and in terms of business complementarity. With GDM as the new owner a strong player will emerge that will seek to grow further in the South American soybean and corn market“, said Nicolás Wielandt, member of the executive board, responsible for the corn sector of KSW.

The parties have agreed not to disclose the details of the transaction or the exact amount of the purchase price.

Finally, the Chacabuco-born company specifies that the transaction agreements will be subject to the prior approval of the Administrative Council of Economic Defense (CADE) in Brazil and the National Competition Defense Commission in Argentina.

Source: Clarin

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