Earlier this year, Axia had sold its open-air seed business to Indian company Namdhari Seeds. According to people familiar with the matter, Japanese auto parts manufacturer Denso plans to acquire Axia Vegetable Seeds Group, a Temasek-backed seed sup...
Earlier this year, Axia had sold its open-air seed business to Indian company Namdhari Seeds.
According to people familiar with the matter, Japanese auto parts manufacturer Denso plans to acquire Axia Vegetable Seeds Group, a Temasek-backed seed supplier, for about US$500 million (S$640 million) to expand its agricultural field. The two sides are currently in final negotiations.
Denso and Temasek spokespersons declined to comment, while Dutch-based Axia did not immediately respond to a request for comment.
Densofa Corporation is accelerating its entry into the agricultural sector with the goal of becoming a major supplier of industrial greenhouses that can produce food in a variety of climates. In 2023, the company proposed to increase the revenue share of "new value businesses" such as food and agriculture to 20%. Currently, in the relevant market of about 700 billion yen (S$6.3 billion), Denso only accounts for about 2%, and still has huge growth potential.
Bloomberg quoted people familiar with the matter on Monday (May 26) that Temasek holds nearly half of the equity of Axia, and the transaction is expected to bring considerable profits to Temasek.
