Pioneer Hi-Bred International Inc., an EI DuPont de Nemours & Co.  (DD) business and the world’s leading developer and supplier of advanced plant genetics, agronomic support and services to farmers, intends to open up three production plants and two joint ventures in China in the next five years.

The Chinese corn market is gaining momentum and is rapidly becoming the most exciting and important opportunity for growth. Pioneer Hi-Bred intends to meet the growing demand for corn in China.

DuPont also announced that it sold $600 million of floating-rate notes maturing on March 25, 2014, $500 million of 4.25% fixed notes maturing on April 1, 2021, $500 million of 2.75% fixed notes maturing on April 1, 2016 and $400 million fixed notes maturing on March 25, 2014.

Earlier, DuPont also announced that it would acquire Denmark’s Danisco for $5.8 billion in cash and assumption of $500 million of Danisco’s net debt. The two companies are already partners in a joint venture focused on cellulosic ethanol.

The deal gives a better than 25% premium to Danisco shareholders and will likely produce more than 10% earnings dilution for DuPont in the first year.

Recently, DuPont stated that it will not be increasing its $5.8 billion bid for Danisco, in spite of better-than-expected quarterly results from the Danish food and enzyme maker.

Danisco reported third quarter net profits of DKr310 million ($58 million) compared with a DKr35 4million loss a year ago. Revenues rose 18% to DKr3.9 billion.

Furthermore, DuPont’s focus on the emerging markets, along with a strong performance in the Agriculture & Nutrition segment, is expected to generate top-line growth in the future.

DuPont faces stiff competition from Ashland Inc. (ASH), BASF SE (BASFY.PK) and The Dow Chemical Company (DOW).

Currently, DuPont has a Zacks #3 Rank (Hold) for the short term and an Outperform recommendation for the long term.

 
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