May 15, 2007

Syngenta takes 49 percent stake in Chinese corn seeds company Sanbei

Switzerland-based agrochemical company Syngenta AG Monday (May 14) said it agreed to take a 49 percent minority stake in Chinese corn seeds company Sanbei Seed Co Ltd for an undisclosed price.

The transaction is subject to the required approvals from the Chinese authorities. "Sanbei is an excellent partner for Syngenta to jointly develop innovative corn seed products to meet the growing demand in China for high-quality, high-yielding corn, which is driven by changing agronomic trends and shifting food patterns", said Michael Mack, Chief Operating Officer Seeds at Syngenta. "The company has strong commercial operations and an attractive product portfolio."

Established in 1998, Sanbei is one of the larger high-value corn seeds companies in China. More than 90 percent of Sanbei's sales are generated by corn seeds. In 2006, the company reported sales of approximately US$30 million. Sanbei, headquartered in Longhua, Hebei Province, has around 500 employees.