BASF signs an agreement to acquire an additional part of Bayer's seed and phytosanitary business
This agreement is part of the impositions of the European Union to Bayer for the acquisition of Monsanto.
Following the agreement signed in October 2017, BASF has signed a new agreement to buy more businesses and assets, which Bayer offered to divest in the context of its planned acquisition of Monsanto. The extended operation includes:
The transaction also includes Bayer's oilseed rape business in Australia; certain glyphosate-based herbicides in Europe, predominantly used for industrial applications; and other research projects.
The purchase price for the businesses and additional assets that BASF has agreed upon is 1,700 million euros, subject to adjustments at closing. In 2017, sales of these businesses amounted to around 745 million euros.
This purchase is in addition to the agreement between BASF and Bayer, signed on October 13, 2017, for a value of 5,900 million euros, also subject to adjustments at closing, and which includes the acquisition of the global business of non-selective herbicides of glufosinate from Ammonium from Bayer, marketed under the Liberty® brand. These businesses generated sales worth 1,500 million euros in 2017.
Both transactions, with a total sales value in 2017 of 2,200 million euros and 2,000 million euros in 2016, complement BASF's biotechnology and crop protection business activities, providing new capabilities and opportunities for growth and innovation. The purchase price for the combined acquisition is € 7,600 million, subject to closing adjustments. In 2016, the combined businesses generated an EBIT before extraordinary of 550 million euros.
For Kurt Bock, president of BASF SE, "with this acquisition, BASF will become an even better partner for farmers thanks to the strengthening of our crop protection portfolio and the entry into the seed business in key agricultural markets. With this greater reach, we are accelerating and expanding our growth in all regions. "
"This is another important milestone for BASF in the field of agriculture, and we expect new employees to join the team and actively participate in our future growth," said Saori Dubourg, Board Member of BASF SE and responsible for the division of crop protection. "Our customers will benefit from a balanced and highly innovative offer that will help them develop their businesses successfully," added Dubourg.
"With our expanded portfolio of seeds and treatments, chemical and biological protection of crops, soil and plants, and digital farming applications, we will have even more tools to support farmers," said Markus Heldt, president of the crop protection division. of BASF ". "When these transactions are completed, we will have more than 12,000 experienced employees who will help us connect innovative ideas with practical actions to help our customers increase their yields, crop quality and profitability," Heldt concluded.
All transactions are still subject to the closing of the acquisition of Monsanto by Bayer, scheduled for the second quarter of 2018. The acquisition of BASF from the businesses and assets that Bayer offered to divest in the context of its planned acquisition of Monsanto remains subject to the approval of the competent authorities.
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