December 11, 2010

DuPont's South African deal gets rejected

The proposed partnership of Pioneer Hi-Bred, a DuPont subsidiary, with Pannar Seed has been rejected by the South African Competition Commission.

In September, the group announced that it had taken an 80% stake in South African seed distributor Pannar for an undisclosed amount. The agreement however, had been subject to review by the South African Competition Commission, who on Wednesday (Dec 8) declined the proposed partnership.

"Pioneer Hi-Bred is disappointed that the South African Competition Commission has declined its proposed partnership with Pannar Seed and plans to refer the decision to the Competition Tribunal for reconsideration," the company said in a statement.

"We believe this partnership is significant in delivering on that need by providing farmers with better products faster than either business could on its own," Pioneer Hi Bred said.

South African Pannar Seed was founded in 1958 in Greytown, an agricultural community situated in KwaZulu-Natal, on the eastern seaboard of the country.

In addition to its extensive research infrastructure in Africa, it also conducts research and commercial activities in the US and Argentina and has a genetics licensing business in Europe.