Global chemistry firm BASF has closed the acquisition of a range of businesses and assets from rival Bayer.
The transaction is said to “complement” BASF’s own crop protection, biotech and digital activities and also marks its entry into seeds, non-selective herbicides and nematicide seed treatments.
As a result of the deal, around 4,500 Bayer employees will join BASF’s Agricultural Solutions team.
Dr. Martin Brudermuller, chief technology officer of BASF SE, said: “This strategic move adds excellent assets to our strong agricultural solutions portfolio and enhances our innovation potential. Overall, it ensures an even more comprehensive and attractive offering to our customers.
Board member Saori Dubourg added: “This acquisition transforms BASF in agriculture. It strengthens our market position in agricultural solutions and creates new opportunities for growth.
“We are looking forward to our joint journey and warmly welcome the new colleagues to BASF.”
BASF signed agreements in October 2017 and April 2018 to acquire the businesses and assets Bayer offered to divest in the context of its acquisition of Monsanto, for an all-cash purchase price of €7.6 billion, subject to certain adjustments at closing.
The 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.
These transactions are now completed, except for the vegetable seeds business for which closing is expected later this month.
“With strong solutions from seeds to harvest, enabled by even better research and development capabilities and scale, we will increase the competition in the market. This means customers have a real choice, today and in the future,” explained Markus Heldt, president of BASF’s Agricultural Solutions division.
“After months of preparing the seamless transfer of businesses and smooth onboarding of employees, everybody is keen to finally get started – as a new team and with our expanded business and capabilities.”
To reflect the expanded scope of its agriculture business, the Crop Protection division has been renamed ‘Agricultural Solutions’. In addition, the division has also established a new global business unit for seeds and traits.
