Sector News

BASF monitoring agrochemical deals for potential opportunities

September 7, 2016
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

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.