Corteva pays $200 million in herbicide deal with FMC

FMC and Corteva announced the signing of a strategic supply and licensing agreement for joint operations in the corn and soybean markets in North and South America. The partnership provides for expanding access to the technology of a herbicide developed by FMC through products that will be sold separately by each company.

Under the terms of the agreement, FMC will retain the intellectual property of the technology and will be responsible for supplying the active ingredient to Corteva. The two companies will develop and commercialize their own formulations aimed at corn and soybean crops in the markets covered by the partnership.

The contract is expected to last for the next decade. As part of the agreement, Corteva will make an upfront payment of US$200 million towards FMC's future supply of products.

According to the companies, the collaboration seeks to expand the availability of new tools for managing herbicide-resistant weeds.

FMC informed that it will continue to develop applications of the technology for other crops and markets outside the scope of the agreement. Corteva highlighted that the collaboration is part of its strategy of establishing partnerships aimed at strengthening its operations in the weed control segment.

The first commercial sales of the products resulting from the partnership are expected to occur by the end of the decade, subject to the necessary regulatory approvals in the countries involved.

The additional amounts and other financial details of the agreement were not disclosed by the companies.

Source: CNN