October 26, 2017
Bayer to sell Crop Science businesses to BASF for €6B
The sale is subject to successful closing of Bayer's acquisition of US seeds maker Monsanto.
The assets to be sold generated net sales of around EUR1.3 billion in 2016. "We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction", said Werner Baumann, chair of the Bayer AG board of management.
"At the same time", he added, "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".
The Bayer-BASF transaction is subject to regulatory approvals, along with the successful closing of Bayer's acquisition of Monsanto.
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.
The seeds businesses being divested include the soybean seed business, global cotton seed business (excluding India and South Africa), and the North American and European canola seed businesses. The transaction includes the transfer of relevant intellectual property and facilities, as well as more than 1,800 employees primarily in the US, Germany, Brazil, Canada and Belgium.
As part of the agreement, BASF has committed to maintain all permanent positions, under similar conditions, for at least three years after closing of the transaction.
Dr. Kurt Bock, chair of the BASF board of executive directors, said, "With this acquisition, we are seizing the opportunity to purchase highly attractive assets in key row crops and markets. We look forward to growing these innovative and profitable businesses and to welcoming the experienced and dedicated team in crop protection, seeds and traits. These businesses are an excellent match for BASF Group's portfolio".
Bayer will continue to own, operate and maintain these businesses until the closing of the divestiture. After the closure of the planned Monsanto acquisition, Bayer will continue to be active in these same areas as a result of Monsanto's current programmes, products and offerings.
Last August the European Commission opened an in-depth investigation to assess the proposed acquisition of Monsanto by Bayer under the EU Merger Regulation.