BASF agrees $6.97bn deal to buy Crop Science businesses from Bayer
Bayer is sheddin...
BASF, the largest manufacturer of chemicals in the world, has struck a deal with Bayer to acquire some of its Crop Science businesses.
Bayer is shedding assets to fulfil competition obligations as it looks to finalise its takeover of Monsanto, with BASF assuming control of divisions which between them amass €1.54bn in annual sales.
The assets to be sold include Bayer’s global glufosinate-ammonium business and the related LibertyLink technology for herbicide tolerance, essentially all of the company’s field crop seeds businesses, as well as respective research and development capabilities.
- Smart food – how tech is transforming agriculture
- Bayer and Bosch turn farms digital with smart spraying solution
- Bayer sells €1.2bn worth of Covestro shares
The seeds businesses being divested include the global cotton seed business (excluding India and South Africa), the North American and European canola seed businesses and the soybean seed business.
The transaction includes the transfer of relevant intellectual property and facilities, as well as more than 1,800 employees primarily in the United States, Germany, Brazil, Canada and Belgium. BASF has agreed to keep all staff for at least three years after the takeover is completed.
Werner Baumann, Chairman of the Board of Management of Bayer AG, said: “We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction.
“At the same time, we are pleased that, in BASF, we have found a strong buyer for our businesses that will continue to serve the needs of growers and offer our employees long-term prospects.”
BASF turned over €67.97bn in 2016.