KWS SAAT SE & Co. KGaA (XTRA:KWS) said that it plans to sell its 49% stake in Chinese corn joint venture business Kenfeng Kws seed co ltd to its partner Beidahuang KenFeng Seed Co.,Ltd because of changes in the regulatory environment in the Asian country. The sale, which also covers Kenfeng - KWS?s corn portfolio and related licences, is expected to generate proceeds of a medium double-digit million euro amount.

Details of the transaction and the exact amount of the price were not disclosed. The deal is subject to the execution of purchase agreements, which are expected to be signed on November 18. The transaction also requires the approval of Chinese authorities and corporate bodies of Beidahuang Group, the parent of Beidahuang Kenfeng Seed.

The German company expects that the deal will have a significant positive effect on its operating profit and pre-tax profit in fiscal 2023/24. Upon completion, KWS will reduce its business activities in China, where foreign companies are no longer allowed to develop genetically modified corn.