Thursday, June 13, 2024

BASF signs agreement to acquire additional seeds and crop protection businesses and assets from Bayer

Karachi (Maaz Abbasi), May 02: In addition to the agreement signed in October 2017, BASF has signed an agreement to purchase further businesses and assets, which Bayer offered to divest in the context of its planned acquisition of Monsanto. The expanded scope includes Bayer’s entire vegetable seeds business, operating under the global trademark Nunhems®, seed treatment products sold under the Poncho®, VOTiVO®, COPeO® and ILeVO® brands, the R&D platform for hybrid wheat and the complete state-of-the-art digital farming platform xarvioTM.

The all-cash purchase price for the additional businesses and assets BASF agreed to acquire is €1.7 billion, subject to certain adjustments at closing. For the full year 2017, sales of these businesses amounted to around €745 million.

The transaction also includes Bayer’s oilseed rape business in Australia; certain glyphosate-based herbicides in Europe, used predominantly for industrial applications; the canola-quality juncea research and certain non-selective herbicide and nematicide research projects.

This purchase is in addition to theagreement BASF and Bayer signed on October 13, 2017, which entails the acquisition of Bayer’s global glufosinate-ammonium non-selective herbicide business; seeds businesses for key row crops in select markets and trait research and breeding capabilities for these crops along with the LibertyLink®trait and trademark. These businesses generated sales of €1.5 billion in 2017. The all-cash purchase price for this prior transaction is €5.9 billion, subject to certain adjustments at closing.

Both transactions, with combined 2017 sales of €2.2 billion and combined 2016 sales of €2.0 billion, complement BASF’s crop protection business and biotechnology activities, adding new capabilities and opportunities for profitable growth and innovation. The all-cash purchase price for the combined acquisition is €7.6 billion, subject to certain adjustments at closing. In 2016, the combined businesses generated EBITDA of €550 million (on a pro forma adjusted basis).

“With this acquisition, BASF will become an even better partner for farmers by strengthening our crop protection portfolio and entering the seeds business in key agricultural markets. Through the expanded scope, we are accelerating and broadening the basis for growth across all regions,” explained Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

“This is another important milestone shaping the future of BASF in agriculture, and we look forward to having the new colleagues join the team and play an active part in our future growth,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Agricultural Solutions segment. “Our customers will benefit from a balanced and highly innovative offering that will give them a real choice and help them develop their businesses successfully,” Dubourg added.

“With our expanded portfolio across seeds and traits, chemical and biological crop protection, soil and plant health, and digital farming applications, we will have even more tools to support farmers,” explainedMarkus Heldt, President of BASF’s Crop Protection division. “When these transactions are completed, we will have more than 12,000 experienced employees working in agriculture to connect innovative thinking with practical action to help our customers increase their yields, crop quality and profitability,” Heldt concluded.

All transactions remain subject to the closing of Bayer’s acquisition of Monsanto, expected in the second quarter of 2018. BASF’s acquisition of the businesses and assets Bayer offered to divest in the context of its planned acquisition of Monsanto remains subject to the approval by relevant merger control authorities.

  • BASF Team Team is a comprehensive online platform dedicated to providing valuable agricultural information and resources in Pakistan. With a focus on promoting sustainable farming practices, enhancing agricultural productivity, and empowering farmers, serves as a one-stop hub for all things related to agriculture in Pakistan. Through its user-friendly interface and a vast array of content, the platform aims to connect farmers, researchers, policymakers, and other stakeholders, facilitating knowledge exchange and driving the transformation of the agricultural sector in Pakistan.

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