UPL Ltd announced that its UK subsidiary Advanta Seeds and US-based Bunge will each buy a 20% investment in SeedCorp HO, a Brazilian firm that develops soybean genetics.
The acquisition will help Advanta Seeds increase its access to markets in Brazil since SeedCorp HO is the country's third-largest soybean germplasm company, UPL said.
It will also broaden the range of goods and services provided by Origeo, a recent joint venture between Bunge and UPL that will provide Brazilian farmers agri-solutions from the time of planting to the time after harvest.
Bunge, a supplier of agricultural commodities, also intends to use this acquisition to expand its barter trade to reinforce its grain sourcing position in Brazil.
SeedCorp HO's Chief Executive Officer Mrio Carvalho said this partnership will strengthen its growth strategy with their portfolio and research and development capacity for seed production.
UPL said this agreement is subject to customary precedent conditions agreed by the parties, including approval from antitrust agencies.
On the National Stock Exchange, shares of UPL ended 0.4% lower at 767.5 rupees.
