Monsanto Company and China National Seed Group Corporation (CNSGC) have entered into an agreement to expand their investments in the companies' existing Chinese joint venture company. The agreement is subject to approval by Chinese government authorities.
This agreement between China Seed, a wholly-owned subsidiary of Sinochem Corporation, and Monsanto Far East Limited, a wholly-owned subsidiary of Monsanto Company, will increase their investment in CNSGC-DEKALB Seed Company Ltd. ("CNDK"), an existing joint venture company formed in 2001. The investments will enable CNDK to expand its existing corn seed business, by combining CNDK's business operations with the corn seed business of China Seed and providing CNDK access to elite corn seed hybrids developed by Monsanto and China Seed.
Under the agreement, China Seed will contribute its existing corn seed business assets and Monsanto will contribute 575 million RMB (approximately $84 million US) to the joint venture. China Seed will continue to hold a 51% ownership interest in CNDK while Monsanto will continue to hold a 49% ownership interest in the joint venture. Additional details of the agreement have not been disclosed at this time.