BASF acquires a significant part of Bayer's seed and non-selective herbicides business

At the end of 2017, BASF announced that it had signed an agreement to purchase significant parts of Bayer relating to the seed and non-selective herbicide business, with the transaction valued at EUR 5.9 billion. 

In connection with the acquisition of the American company Monsanto, announced more than a year and a half ago, Bayer is seeking to sell part of its assets in order to obtain regulatory approval for the transaction. The deal is expected to be finalized at the beginning of 2018, after Bayer completes the acquisition of Monsanto for EUR 66 billion.

BASF is buying Bayer’s non-selective herbicides marketed under the brands Liberty®, Basta® and Finale®, as well as the field crop seed business in selected major markets. These include rapeseed hybrids in North America under the InVigor® brand, which uses the LibertyLink® Trait technology; oilseed rape hybrids mainly in Europe; cotton in North America, South America and Europe; and soybeans in North and South America. The transaction also includes research and breeding capabilities, as well as the development of the LibertyLink® Trait technology.*

“By carrying out this transfer, new opportunities for growth will be created and the global innovation potential of the German group BASF will be strengthened,” said Saori Dubourg, Member of the Board of Executive Directors of BASF SE.

"With this investment, we are seizing the opportunity to acquire highly attractive products in key crops and markets. This is a strategic addition to our well-established and successful business in crop protection and modern biotechnology," announced Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE. "The acquisition will enable us to further expand our offerings in Agricultural Solutions – a key component of BASF’s portfolio."

Once the agreement is finalized, about 1,800 Bayer employees from Germany, the USA, Brazil, Canada and Belgium will be transferred to the world’s third-largest chemical company. BASF will take over the management of the research departments in Germany, the USA and Canada, where glufosinate-ammonium is produced. Bayer’s breeding centers in North America, South America and Europe will also become part of the new vision of the chemical group BASF. "We look forward to welcoming our new colleagues from Bayer. Together, we will work to address the challenges facing farmers worldwide and help shape the long-term success of BASF," said Markus Heldt, President of BASF’s Crop Protection division.

LibertyLink® Trait.* is an alternative method of weed control that aims to respond to the globally increasing problem of weed resistance to glyphosate-based products. The technology involves the use of the active substance glufosinate-ammonium, approved on world markets as the herbicide Liberty, and the use of LibertyLink seeds. Bayer’s product is an alternative that farmers can use for effective weed management. LibertyLink seeds are available for the following crops: maize, cotton, rapeseed, sugar beet and soybeans.

More on this topic:

How much is Monsanto worth?

Monsanto plans to eliminate its main competitor in Europe ­– Syngenta