The national plant genetics company GDM continues to expand: today it announced the
acquisition of the corn and sorghum business of the German company KWS in South America.
The transaction includes all of KWS's corn and sorghum breeding and sales activities in South America (Brazil, Argentina, Paraguay and Uruguay), as well as all corn and sorghum production sites in Brazil and corn in Argentina, involving to around 700 collaborators.
GDM was born in Chacabuco 42 years ago, and operates in 15 countries, with a total of 1,800 employees.
For its part, KWS is one of the main seed improvement companies worldwide.
With more than 5,000 employees in more than 70 countries, it generated net sales worth around €1.8 billion in the fiscal year 2022/2023,
As indicated by the GDM company in the official statement, the incorporation of KWS's position and know-how in corn, together with the acquisition of Biotrigo in 2023, consolidates it as a relevant company in extensive crops in South America.
“The combination of KWS's corn position with GDM's knowledge in plant genetics, with a focus on soybeans and wheat, creates a
unique synergy and strength
for our position in the market and the continuous advancement of our company," said Ignacio Bartolomé. , CEO of GDM.
“
We will continue to work closely with the entire agricultural chain
, with the purpose of continuing to provide the latest advances in technology applied to plant genetics, with the producer as our main focus and yield as the central objective,” added Bartolomé.
GDM reported that they will continue and enhance the business developed by KWS, highlighted for its agronomic characteristics.
All vegetable, sugar beet activities and counter-seasonal breeding programs of the European maize and sugar beet portfolio in Brazil, Chile and Peru will remain with KWS, and KWS's European maize business will not be affected by the transaction.
“In South America,
we have established a strong position in the corn market, something we are very proud of
.
However, to implement the strategic objectives of the KWS group with full strength and focus, we have decided that this is the right time, in terms of business maturity, to find a partner who is in a strong position to lead the corn business in America. from the South to the next level.
We are completely convinced that GDM is the right choice, both from a cultural perspective and in terms of its complementary business position.
With GDM as the new owner, a strong player will emerge that seeks to grow even further in the South American soybean and corn market
," stated Nicolás Wielandt, member of the Executive Board, responsible for KSW's corn business.
The parties have agreed not to disclose the details of the transaction or the exact amount of the purchase price.
Finally, the firm born in Chacabuco states that the transaction agreements will be subject to prior approval by the Administrative Council for Economic Defense (CADE) in Brazil and the National Commission for the Defense of Competition in Argentina.