Monsanto to invest US$84 mln in China JV

Monsanto, a global leading agriculture company, will invest an additional US$84 million in its joint venture, CNSGC-DEKALB Seed Co (CNDK), with China National Seed Group Corp (China Seed), in a move to further expand its market share for corn hybrids in China.

The two holders of the joint venture have entered into an agreement, which is yet to be approved by the Chinese government.

Besides Monsanto's investment, China Seed will inject its corn seed business to CNDK according to the agreement. Upon the approval, CNDK will have access to corn seed hybrids developed by its two holders, and China Seed will be able to expand product of offerings to other corn-growing areas besides the tropical region where the company currently operates.

CNDK, founded in 2001, is a 51:49 joint venture held by Monsanto and China Seed, respectively.

China Seed is a subsidiary of China National Chemicals Import & Export Corp (Sinochem Corp).