UPDATE 1-Syngenta snaps up another flower seeds business

(Wraps previous stories, adds shares and comment)

By Sam Cage

ZURICH, Oct 29 (Reuters) - Switzerland's Syngenta AG (SYNN.VX) bought another flower seeds business and announced development of a novel technology to increase efficiency of sugar cane planting, giving its shares boost.

The world's largest agrochemicals company said on Wednesday it would buy the chrysanthemum and aster unit of U.S. flowers producer Yoder Brothers. Financial details were not disclosed, but Syngenta said the two crops accounted for about $24 million of Yoder's sales.

"Following the acquisition of Goldsmith Seeds this is already the second bolt-on acquisition in Flowers within 8 days," said Vontobel analyst Patrick Rafaisz. [ID:nWNAB8811]

"We view the acquisition as a small positive as it will further strengthen Syngenta's proprietary flower seeds portfolio in the U.S," Rafaisz said.

Syngenta shares rose 9.6 percent to 193.40 Swiss francs, just ahead of a 7.6 percent gain in the European chemicals sector .SX4P.

Syngenta also said it was developing technology, planned for launch in 2010, that would dramatically improve the cost efficiency of sugar cane planting in Brazil.

The technology, called Plene, would cut planting costs per hectare by about 15 percent and has a market potential of $300 million per year by 2015, the group said in a statement. (Editing by Quentin Bryar)