DuPont plans to appeal South Africa rejecting seed company purchase

A South African regulatory commission has rejected E.I. DuPont de Nemours & Co.'s (DD) deal to purchase a majority stake in local seed company Pannar Seed Ltd.

DuPont subsidiary Pioneer Hi-Bred will appeal the decision by the South African Competition Commission, Pioneer said in a statement Wednesday.

The deal, announced in September, was touted as a way for DuPont to expand its presence in Africa, where yields have lagged for crops such as corn. Improved yields there are seen as crucial to feeding a growing world population that is consuming more meat, which requires more grain for feed.

Pioneer said the deal would provide farmers "with better products faster than either business could on its own.

"The demand for improved agricultural productivity and food security exists in Africa today, and will only increase in the future," it added.

South Africa-based Pannar's operations are mostly focused in Africa, though it does have operations elsewhere, including in the U.S.

Terms of the deal between Pioneer and Pannar hadn't been disclosed.