ADQ to Acquire 35% Stake in Limagrain Vegetable Seed

As part of the UAE’s plans to increase domestic food production to 50% of total consumption and reduce reliance on imports, the state-owned ADQ will acquire 35% stake in the Limagrain Vegetable Seed (LVS) division of Limagrain, an agricultural cooperative and international seed group.

Headquartered in France, LVS is the global leader in the vegetable seeds industry, with a strong legacy dating back to 1743.

Renowned for its best-in-class R&D capabilities and consistent innovation, LVS operates 56 research centers across 20 countries and offers the most extensive product portfolio within the industry, covering 43 of the world’s 50 major vegetable crops.

Its global manufacturing footprint includes eight facilities across six countries in Europe, North America, and Asia. LVS’s seed portfolio includes globally renowned brands such as Vilmorin, Mikado, Harris Moran, Clause, and Hazera, serving growers across the Americas, Europe, Asia, and the Middle East and Africa.

As part of the proposed collaboration, LVS and Silal, an ADQ portfolio company specialising in agri-food technology, plan to establish a research and development partnership, leading to the creation of a joint venture focused on desert-adapted vegetable genetics.

The collaboration aims to develop innovative genetic solutions that enhance the resilience of vegetable crops to extreme environmental conditions such as extreme heat, drought, and salinity. Research and development would be conducted at Silal’s Innovation Oasis in Al Ain, a purpose-built agritech hub equipped with state-of-the-art greenhouses, growth chambers, and seed testing laboratories, with LVS contributing its global expertise in vegetable genetics.

Together, the partners are committed to advancing solutions for sustainability and food security in arid and semi-arid regions, particularly across the Gulf.

The transaction represents a strategic entry by ADQ into a vital segment of the food value chain. In parallel, the research and development partnership between Silal and LVS would accelerate local innovation in desert adapted seeds and contribute meaningfully to the UAE’s national food security agenda.

Developing climate resilient seed varieties is essential for enhancing crop yields and ensuring reliable food supply, both of which are central to achieving the UAE’s long-term objectives, including increasing domestic food production to 50% of total consumption and reducing reliance on imports.‍

Natural Next Step

ADQ’s Deputy Groyp CEO Mansour Al Mulla said that over the past years, ADQ has focused on building and growing its food & agriculture cluster, anchored by fully integrated market leaders across key segments of the value chain.

As part of ADQ’s commitment to strengthening the UAE’s economic resilience, expanding into the seeds segment represents a natural next step and it enables them to deepen their exposure to one of the most critical components of the food value chain, he said.

By combining Silal’s world-class infrastructure and innovation capabilities with the scientific excellence of LVS, we are well positioned to deliver seed innovation solutions that create commercial value while supporting the UAE’s food security, he added.

Limagrain CEO Sebastien Chauffaut said that they chose ADQ as a potential partner because they not only have a shared vision and values, but are united in a strong commitment to long term sustainable investment and a clear focus on innovation.

This potential partnership reflects Limagrain’s mutual dedication to advancing agricultural technologies that address global challenges.

“ADQ’s planned investment in our vegetable seeds business would provide important strategic support to strengthen our position as a global leader in the vegetable seed market and accelerate the development of climate resilient crop varieties,” he added.