DuPont Co. agricultural subsidiary Pioneer Hi-Bred received regulatory clearance to purchase a majority stake in the South African seed company Pannar Seed Ltd., the companies said Monday.
Terms of the deal were not disclosed.
DuPont, a Wilmington, Del.-based chemical maker, said the South African Competition Appeal Court approved the deal, overturning a decision by the South African Competition Tribunal.
In addition to buying a stake in Pannar, Pioneer said it will spend 62 million rand (about $7.3 million) by 2017 to establish a regional research center in South Africa that brings advanced research and development breeding technologies to Africa. The company also committed 20 million rand (roughly $2.4 million) to programs that help developing farmers in South Africa.
The companies said the deal will help them increase investment "in innovative products and services for farmers across Africa."
Pannar has operations throughout Africa and on other countries. Des Moines, Iowa-based Pioneer develops advanced plant genetics and provides seeds to farmers in more than 90 countries.
