Syngenta announced it has signed and closed an agreement to acquire SPS Argentina SA (SPS) to increase Syngenta’s presence is the critical soybean market in Argentina.
SPS primarily specializes in the development, production, and marketing of soybean, corn, and sunflower. The transaction will complement Syngenta’s existing strong positions in corn and sunflower.
“This investment expands our customer base in Argentina and accelerates the introduction of our proprietary GM traits in soybean and corn,” says Davor Pisk, chief operating officer of Syngenta Seeds.
SPS was established in 1972 and is based in Buenos Aires Province, where it also runs an advanced research program. SPS has around 50 employees and recorded sales of $15 million in the fiscal year to March 2008.
Argentina is the world’s third largest soybean producer with 21% of global soybean production. In 2007, some 48 million tons were harvested, mostly for export to Asia and Europe.
Syngenta already develops, produces, and markets premium quality seeds under the NK, Rogers and S&G brands in Argentina. Its portfolio includes soybean, corn, sunflower, sorghum, and vegetable seeds.
The transaction is subject to approval by the Argentine antitrust authorities. Financial details have not been disclosed.