Pioneer’s purchase of South African seed company approved
Pioneer, the agriculture branch of E.I. du Pont de Nemours and Co., announced last September that it intended to purchase Pannar. The purchase will give Pannar access to Pioneer’s library of research on genetically modified seeds, and Pioneer will get get access to a new African market of about 80 million acres.
“Pioneer is the ideal partner for the long-term growth of our business,” said Brian Corbishley, chairperson of Pannar, in a release. “This is a substantial investment of capital and expertise in South Africa and a vote of confidence in the future potential of agriculture in Africa.”
The South African Competition Tribunal previously denied Pioneer’s request to approve the purchase, saying it would limit the number of seed companies in the country and decrease competition, according to Reuters.
For approval, Pioneer and Pannar agreed to several conditions. They will make a “significant investment” in South Africa, open a research and development institute in the country, and work with local governments to help them address problems with small-scale farming, according to a release.