By Tom Polansek
CHICAGO, Nov 30 (Reuters) - Dow Chemical Co DOW.N has
struck a deal to sell a part of its global herbicide business,
as low crop prices continue to drive talk of consolidation in
the agriculture industry.
Dow on Monday said it agreed to sell a portfolio of weed
killers known as dinitroanilines to privately held Gowan
Company. The deal comes a month after Dow said it was reviewing
all options for its farm chemicals and seeds unit, which has
reported falling sales for nearly a year.
The companies did not disclose terms of the deal. It is
expected to close by the end of the year, they said.
The farm sector is struggling to cope with falling crop
prices and diminished demand for crop protection products, which
have hurt sales in the agricultural businesses at companies
including Dow, Monsanto (N:MON) Co MON.N and EI du Pont de Nemours &
Co DD.N .
Dow's sale includes global product registrations and
trademarks for herbicides including Treflan, which can be
sprayed on field corn, cotton and some fruit and vegetables,
according to a statement. A formulation and packaging facility
in Alberta, Canada, is also part of the deal.
Dinitroanilines, or DNA herbicides, have been a part of weed
management programs for more than 50 years, according to Dow.
The company will "invest in innovative and differentiated
products," Ramiro De La Cruz, vice president of crop protection
for Dow AgroSciences, said in the statement.
A company spokeswoman did not immediately answer questions
seeking more information.
"We are grateful for the opportunity to defend and evolve
the DNAs for niches that have long been our sweet spot, such as
vegetables and turf," said Juli Jessen, chief executive of Gowan
Group.
Dow rival Monsanto has said it is studying every possibility
for consolidation in the seed and agrochemical sectors.
Monsanto, the world's largest seed company, abandoned a $45
billion bid for Syngenta AG SYNN.VX in August and since then,
nearly all of the major players in the farm chemicals and seeds
business have been the subject of consolidation talk.