Pioneer, Pannar in $30m deal

Business Reporter
DuPont Pioneer and Pannar yesterday approached the Competition and Tariff Commission seeking approval for Pioneer Hi-Bred (Zimbabwe) (Pvt) Ltd to acquire the assets and liabilities of Pannar Zimbabwe in a $30 million deal.

The deal seeks to consolidate the two companies into a single entity operating under Pioneer Hi-Bred Zimbabwe.

CTC is, however, yet to make a determination on the application.

“The consolidation will allow both brands to build the foundation for profitable growth through improved revenues, an improved cost structure and improved liquidity positions,” said DuPont Pioneer senior business manager for East, South and Central Africa Mr Worede Woldemariam.

“Our efforts will focus on leveraging the asset footprint across both brands to enable the business to be sustainable and position us for growth here in Zimbabwe in the long term,” said Mr Woldemariam.

The deal is being brokered by prominent corporate lawyer Mr Addington Chinake of Kantor and Immerman.

Mr Chinake was credited also for brokering the $265 million deal between Atlas Mara Co-Nvest Limited and the African Banking Corporation last year.

He was also instrumental in the Astra Industries and Kasai Plascon Africa Limited and Hemistar Investments deal in which the two companies acquired more than 80 percent of Astra.

DuPont Pioneer is the world’s leading developer and supplier of advanced plant genetics, providing high quality seeds to farmers in more than 90 countries.

Pioneer provides agronomic support and services to help increase farmer productivity and profitability and strives to develop sustainable agricultural systems for people everywhere.

Since 1802, DuPont has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials and services.

Pioneer and Pannar have remained committed to agriculture in Zimbabwe during the entire time of economic uncertainty.

However, continued pressure on sales, revenue and profits as well as increasing bad debt write-offs, largely attributed to the continuing liquidity issues have obligated the two companies to take a course that allows for survival of the two brands in the country even if under one organisation.