Sector News

BASF monitoring agrochemical deals for potential opportunities

September 7, 2016
Energy & Chemical Value Chain

German chemicals group BASF SE is monitoring antitrust concerns over planned tie-ups in the global agrochemical industry for potential acquisitions, the head of the company’s crop protection business said Tuesday.

“We are looking at antitrust issues to see if we can help,” Markus Heldt, president of BASF’s agricultural division, said of ongoing mergers and acquisition plans in the sector. Competition authorities could require companies to sell some assets to win approval for their deals.

Mr. Heldt’s comments to reporters came shortly after German rival Bayer AG raised its offer to buy Monsanto Co. in a deal that could value the U.S. company at over $65 billion including debt.

That potential deal, which has been in the works since May, is the latest in a wave of consolidation in the industry amid a slide in global crop prices.

Dow Chemical Co. and DuPont Co. last year announced a merger that the companies—together valued at roughly $103 billion—said would ultimately create one of the world’s largest agrochemical firms.

Earlier this year, Chinese state-owned China National Chemical Corp. announced a $43 billion cash deal to acquire Syngenta AG, after a failed attempt by Monsanto to buy the Swiss agrochemicals group.

BASF’s Mr. Heldt said that any acquisitions would have to make “strategic and financial sense” and fit into the company’s existing portfolio. He said BASF was also evaluating “bolt-on” acquisitions in the agrochemical sphere.

By Christopher Alessi

Source: Wall Street Journal

comments closed

Related News

July 14, 2024

Europe ethylene spot prices turn firmer on demand, feedstock, looming cracker turnarounds

Energy & Chemical Value Chain

European ethylene spot prices have firmed week on week on the back of better-than-expected demand amid higher feedstock values and an increasing focus on upcoming planned cracker maintenance outages. Spot deals this week have been reported at discounts of 32-35% on the pipeline, prior deals had been at discounts of around 38-39%.

July 14, 2024

Marcel Imwinkelried appointed new Siegfried CEO

Energy & Chemical Value Chain

He will succeed Reto Suter, who has led the Siegfried Group as CEO ad interim since the departure of Wolfgang Wienand on May 1, 2024. Suter will now focus on his role as Chief Financial Officer for Siegfried. Wienand will become CEO of Swiss competitor Lonza.

July 14, 2024

Honeywell acquires Air Products’ LNG technology, business for $1.8B

Energy & Chemical Value Chain

Honeywell Inc. (Charlotte, North Carolina) has reached agreement to acquire Air Products’ (Leigh Valley, Pennsylvania) liquefied natural gas process technology and equipment business for $1.81 billion. The deal is expected to close before the end of the year. The price represents a multiple of 13 times the unit’s estimated 2024 EBITDA.

How can we help you?

We're easy to reach