Sector News

BASF closes acquisition of selected Bayer agchems businesses

August 1, 2018
Chemical Value Chain

BASF said today that it has closed the acquisition of selected agricultural chemicals businesses and assets from Bayer. The transaction complements BASF’s crop protection, biotech, and digital farming activities and marks its entry into seeds, nonselective herbicides, and nematicide seed treatments. BASF’s proforma ag sales will rise by close to 40% as a result of the deal.

BASF signed agreements in October 2017 and April 2018 to acquire the businesses and assets Bayer offered to divest as part of antitrust requirements for its acquisition of Monsanto, for an all-cash purchase price of €7.6 billion ($8.9 billion), subject to certain adjustments at closing. About 4,500 employees will join BASF through the acquisition. The agreements include Bayer’s global glufosinate-ammonium business; seeds businesses including traits, research and breeding capabilities, and trademarks for key row crops in select markets; the vegetable seeds business; the R&D platform for hybrid wheat; a range of seed treatment products; certain glyphosate-based herbicides in Europe, used predominantly for industrial applications; a digital farming platform; and certain nonselective herbicide and nematicide research projects. The vegetable seeds acquisition is expected to close in mid-August 2018.

Saori Dubourg, member of the board of BASF/agricultural solutions, said the acquisition opens up new opportunities for BASF’s ag businesses. “It strengthens our market position in agricultural solutions and creates new opportunities for growth.”

In 2017, BASF reported crop protection sales of €5.7 billion and the operations being acquired from Bayer, including the vegetable seeds business, recorded 2017 sales of €2.2 billion. To reflect the expanded scope of its agriculture business, BASF has renamed the division from crop protection to agricultural solutions. In addition, the division has established a new business unit for seeds and traits.

By Natasha Alperowicz

Source: Chemical Week

Related News

April 17, 2021

Veolia agrees deal for Suez, merging world’s largest water firms

Chemical Value Chain

VEOLIA has agreed a deal to buy its rival Suez, ending a fraught takeover battle that merges the world’s two largest water and wastewater companies.

April 17, 2021

Borealis begins feasibility study for new chemical-recycling plant in Sweden 

Chemical Value Chain

Borealis Group AG has commenced a new project to secure an increased supply of chemically recycled feedstock for the production of more circular base chemicals and polyolefin-based products.

April 17, 2021

Novozymes joins call to the Biden Administration for significant action in the U.S. to mitigate climate change.

Chemical Value Chain

The call is part of a campaign by Ceres, a nonprofit organization transforming the economy, and the We Mean Business coalition – a global, nonprofit coalition that collaborates with progressive businesses, to bolster action on climate change towards a zero-carbon economy.

Send this to a friend