South Africa Approves Partnership of DuPont Business Pioneer Hi-Bred and Pannar Seed

DES MOINES, Iowa and CAPE TOWN, South Africa, May 28, 2012  /PRNewswire/ -- DuPont business Pioneer Hi-Bred, one of the world's leading agricultural businesses, and Pannar Seed (Pty) Limited, a South African-based seed company with operations throughout Africa and other parts of the world, were today given approval to implement their agreement for Pioneer to purchase a majority share of Pannar.

The South African Competition Appeal Court announced its approval of the transaction, overturning an earlier decision by the South African Competition Tribunal.  Approval is subject to the companies meeting certain conditions and commitments. 

The transaction has already been approved by the competition authorities in other African countries where approval was required, including Kenya, Malawi, Namibia, Swaziland, Tanzania and Zambia. Financial terms of the agreement were not disclosed.

"This is good news for our customers, for our employees and for South Africa," said Brian Corbishley, chairperson of Pannar.  "Pioneer is the ideal partner for the long-term growth of our business.  This is a substantial investment of capital and expertise in South Africa and a vote of confidence in the future potential of agriculture in Africa."

"It's an excellent fit of two seed businesses with similar cultures.  Together with Pannar, we can increase investments in innovative products and services for farmers across Africa," said Pioneer President Paul E. Schickler.  "This will enhance productivity and improve food security as we utilize the strength of our two businesses to accelerate the development of higher performing products for Africa's farmers."

Approval of the transaction is subject to a number of conditions that Pioneer and Pannar have committed to, including significant, long-term investment in South Africa.  In addition to its investment in Pannar, Pioneer has committed R62MM (South African Rand) by 2017 to establish a regional research center in South Africa that would bring advanced R&D breeding technologies to Africa and apply these technologies to the companies' complimentary germplasm pools.  The research center will be similar to the innovative centers that DuPont has established in Brazil, India and China and will allow South Africa the opportunity to play a leading role in agricultural development for the African continent.

Pioneer and Pannar have further committed to working with communities, government and other groups to develop programs addressing the challenges faced by small-scale and developing farmers to increase their overall farm productivity, profitability and food security.  Pioneer has committed R20MM over six years toward programs, in addition to its current endeavors, that will benefit developing farmers in South Africa.

The merger will allow each business to access additional crop areas, reach more customers and deliver improved seed products quicker and more efficiently than either could have achieved on its own.  Pannar receives access to Pioneer's genetics library and its maize breeding and biotechnology capabilities which will benefit its Africa operations and its operations in the United States and Argentina.  Pioneer will tap into Pannar's expertise and reach across Africa and its maize genetics developed specifically for the region.

With nearly 80 million acres[1] (32 million hectares) available for maize production, Africa represents a significant opportunity for improved productivity.  Average grain yields are less than two tons per hectare, about one-third of what is achieved in other developing regions and only one-fifth of yields in developed countries.  In addition, maize seed demand is strong and growing.  In South Africa alone, annual hybrid maize seed sales total about U.S. $300 million[2].

With this partnership, South Africa will become an important center of innovation for Pioneer. Pioneer will therefore have the incentive to invest further in research and development in order to continue to develop the best products for farmers in South Africa and Africa.  As the business expands, additional investments in infrastructure and capacity will be driven by increased business success.

This investment is part of the DuPont strategy to deliver innovative solutions for some of the world's most important challenges, including the need for increased food production.  Earlier this month in conjunction with the G8 Summit, DuPont committed to the New Alliance for Food Security and Nutrition by announcing an investment of more than U.S. $3 million over the next three years to help smallholder farmers in Ethiopia achieve food security.

DuPont has previously committed to invest U.S. $10 billion globally in research and development dedicated to the food, agriculture and nutrition sectors and advancing 4,000 new products by the end of 2020; supporting training and education opportunities for youth around the world; and working with farmers to improve the livelihoods of families in rural communities.

Pannar Seed (Pty) Limited (www.pannar.com) was founded in 1958 in Greytown, South Africa, an agricultural community situated in KwaZulu-Natal, on the Eastern Seaboard of South Africa.  Pannar is a South African-based seed business with operations throughout Africa and internationally.  It has its own seed businesses in nine countries in Africa, including South Africa, and sells through established marketing networks into nine other African countries.  In addition to its extensive research infrastructure in Africa, it also conducts research activities abroad. It has a research and significant commercial presence in Argentina and research and genetics licensing businesses serving the United States and Europe.

Pioneer Hi-Bred (www.pioneer.com), a DuPont business headquartered in Des Moines, Iowa, 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.  Science with Service Delivering Success™.

DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802.  The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment.  For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com.

Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.

5/28/12

The DuPont Oval Logo, DuPont™, The miracles of science™ and Science with Service Delivering Success™ are registered trademarks or trademarks of DuPont or its affiliates.

[1] United States Department of Agriculture

[2] South Africa National Seed Organization, 2011 Annual Report

SOURCE DuPont