COFCO sells Nidera Seeds to Syngenta

08-Nov-2017 - Last updated on 08-Nov-2017 at 04:03 GMT

COFCO has sold its Nidera Seeds business to Syngenta AG, after the acquisition was only complete in February. ©GettyImages

One of China’s state-owned and largest food processors and manufacturers, COFCO, has sold its Nidera Seeds business to Syngenta AG.

The completion of the transaction to the Swiss agri-business company is subject to clearance by the relevant merger-control authorities.

“This agreement is an important step of our strategy to focus on our major businesses," said Johnny Chi, CEO, COFCO International Ltd.

The financial terms of the transaction have not been disclosed.

COFCO’s acquisition of Nidera had only been completed on Feb 28. In May, Nidera Seeds’ global sorghum portfolio was sold to US-based Chromatin Inc as part of the company’s strategy of focusing its resources on its main crops such as corn, sunflower, soybeans and wheat.

According to Reuters, losses inherited from Nidera have raised uncertainty about its short-term prospects.

ChemChina’s takeover of Syngenta earlier this year means Nidera remains in Chinese hands.

COFCO has been busy growing yet streamlining its various businesses. In October, COFCO bought back all wine and non-beverage businesses from offshoot company China Foods, while in September it had signed a deal with US cooperative Growmark to improve its distribution chain.