Corteva Inc., a chemical company in Bloomberg, is ready for a bigger pivot into biologicals, which is considered an environmentally friendly solution to help grow crops. Chuck Magro, the Chief Executive Officer, says he is ready to take on more acquisitions to get there.
In an interview, Magro said that they were looking at whether they should build it or buy it because they're going to invest heavily in their own capabilities, our own pipeline, our own innovation.
As an organization, we have the capability to look around the world and make the best decision in terms of allocation of capital, he said.
Magro said last month that the company agreed to buy biologicals firm Stoller Group for $1.2 billion. Corteva took over Spanish microbiological technology firm Symborg in September. Deal making is heating up across the industry for alternative crop protection. In June, Rival FMC Corp. agreed to acquire pheromone pioneer BioPhero ApS for about $200 million. Farmers are increasingly being pressured to adopt environmentally friendly practices, and that is why the space is coming into the spotlight.
Biologicals use material that already exists in nature to replace synthetic ingredients in chemical pesticides. Pest and crop diseases are more resistant to synthetic chemicals. Corteva expects the biologicals market to represent about 25% of the overall crop protection market by 2035.
In the Thursday interview, Magro said that Corteva is focusing on global food security, climate change and the energy transition. The company is aiming to increase its current 7% of revenue to 8% by the year 2025. Corteva announced earlier this year it would spend $400 million in restructuring to refocus the company.
2 billion dollars.
None of the Viral List That Turned a Yale professor into an enemy of the Russian State.