Global chemistry firm BASF has completed the acquisition of Bayer’s global vegetable seeds business following a €7.6 billion deal between the two firms.
The business, which mainly operates under the brand Nunhems, includes well-established research and development and breeding systems. It runs more than 100 breeding programs across around 15 crops.
The transaction adds a well-recognised brand with a successful business track record to BASF’s portfolio. The acquired vegetable seeds business comprises 24 crops and about 2,600 varieties.
In a statement, BASF said the addition of the vegetable seeds business would enhance its global offer to farmers.
It strengthens BASF’s seed platform and complements its recently expanded ‘Agricultural Solutions’ portfolio, which includes seeds and traits, chemical and biological crop protection, soil management, plant health, pest control and digital farming.
As a result of the deal, around 4,500 Bayer employees will join BASF’s Agricultural Solutions team.
The other 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 research and development platform for hybrid wheat;
- A range of seed treatment products;
- Certain glyphosate-based herbicides in Europe, used predominantly for industrial applications;
- The complete digital farming platform xarvioTM;
- Certain non-selective herbicide and nematicide research projects.
A spokesman for BASF said: “With a rapidly growing population, the world is increasingly dependent on our ability to develop and maintain sustainable agriculture and healthy environments.
“Working with farmers, agricultural professionals, pest management experts and others, it is our role to help make this possible.
“That’s why we invest in a strong research and development pipeline and broad portfolio, including seeds and traits, chemical and biological crop protection, soil management, plant health, pest control and digital farming.”
Monsanto takeover
This closing completes BASF’s acquisition of a significant range of businesses and assets with combined 2017 sales of €2.2 billion, which Bayer offered for sale in the context of its takeover of Monsanto.
Bayer’s Monsanto takeover came just months before a US court ruled against Monsanto brand Roundup in a landmark case costing the company $289 million.
Bayer shares have plummeted by around 18% since the verdict.
