) business unit DuPont Pioneer has closed a transaction to
acquire a majority stake in South Africa-based seed company
Pannar Seed (Pty) Limited.
DuPont Pioneer and Pannar partnership aims to improve the pace
and scope of research and innovation in the African seed
industry. Thus, it would augment the choices for farming products
across Africa. DuPont Pioneer will grow both the Pioneer and the
Pannar brands of seeds and businesses in the future, apart from
retaining the strong Pannar brand.
Pursuant to the deal, DuPont Pioneer will utilize Pannar's
expertise and its maize genetics developed across Africa;
whereas, Pannar will receive access to the Pioneer genetics
library and its maize breeding and biotechnology capabilities.
The partnership will provide growth opportunities, access to
additional crop areas and higher customer base to both the
Separately, as a part of unified research strategy, DuPont
Pioneer will be establishing a technology hub in South Africa by
2017 and will invest ZAR 62 million ($6.2 million). The
technology hub will include a network of research facilities and
testing locations, combined germplasm -- or plant genetic
resource collections -- talent and experience to boost cultivar
breeding and development across Africa.
The network will have premier R&D technologies that
shorten genetic breeding cycles and improve accuracy. The
research efforts will be applicable to all crops including maize,
sunflower, grain sorghum, forage sorghum, wheat, dry beans and
Banking on the partnership, DuPont Pioneer will support
agricultural knowledge-exchange, productivity, rural economics
and livelihoods of African farmers through the development of
DuPont is set to invest $10 billion around the globe in
research and development for the food, agriculture and nutrition
sectors and for developing 4,000 new products by the end of 2020,
supporting training and education opportunities for youth
globally, and working with farmers to improve the livelihoods of
families in rural communities.
This investment by DuPont is a step forward to provide
innovative solutions for some of the world's most important
challenges, including the need for increased food production.
DuPont carries a Zacks Rank #3 (Hold).
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