BASF to Acquire Parts of Seed, Herbicide Biz from Bayer for $7 Bn | CORPORATE ETHOS

BASF to Acquire Parts of Seed, Herbicide Biz from Bayer for $7 Bn

By: | October 13, 2017

Oct 13: Mumbai-based BASF India Ltd, the maker of an array of specialty chemicals, on Friday said that the company has received information from its parent company, BASF SE, Germany, that it has signed an agreement to acquire significant parts of German multinational crop-chemical, pharmaceutical and life sciences company Bayer’s seed and non-selective herbicide businesses.

According to BASF, the said businesses are being divested by Bayer in the context of its planned acquisition of US-based multinational agrochemical and agricultural biotechnology corporation Monsanto. The all-cash purchase is valued at Euro 5.9 billion ($7 billion), subject to certain adjustments at closing, it added.

The said transaction is subject to the closing of Bayer’s acquisition of Monsanto and approval by relevant authorities. The transaction is expected to close in the first quarter of 2018, it said.

According to the company, the assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty, Basta and Finale brands, as well as its seed businesses for key row crops in select markets: canola hybrids in North America under the InVigor brand using the LibertyLink trait technology, oilseed rape mainly in European markets, cotton in the America and Europe as well as soybean in the America. The transaction also includes Bayer’s trait research and breeding capabilities for these crops and the LibertyLink trait and trademark.

For the full year 2016, the sales of the seed & non-selective herbicide businesses to be purchased from Bayer amounted to around Euro 1.3 billion and EBITDA to around Euro 385 million.

“The acquisition complements BASF’s crop protection business, strengthens its herbicide portfolio and marks its entry into the seed business with proprietary assets in key agricultural markets,” the company said.

BASF SE is a German chemical company and one of the largest producers of the commodity chemicals in the world. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, the Americas and Africa.