BASF has completed the acquisition of numerous businesses and assets from Bayer in a deal worth almost $9 billion.
BASF says it has purchased “a range of businesses and assets from Bayer”, including crop protection systems, and some digital assets.
The deal also enables BASF to enter new markets such as seeds, non-selective herbicides, and nematicide seed treatments.
BASF says the transaction is “a strategic complement” to its crop protection, biotech and digital farming activities.
Martin Brudermüller, chairman and CTO of BASF, says: “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.”
Saori Dubourg, director of agricultural solutions, says: “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 for “an all-cash purchase price of €7.6 billion, subject to certain adjustments at closing”.
Bayer was looking sell some of its assets as it looks acquire Monsanto, the US agriculture giant, for $66 billion.
Bayer’s purchase of Monsanto would create the world’s biggest seed and agricultural biotech company, something that concerned the authorities on both sides of the Atlantic.
But the deal has been approved by the US and EU, subject to some conditions, including the sale of some of Bayer’s assets, which where BASF purchase is relevant.
About 4,500 employees join BASF through the acquisition.
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 xarvio; and
- certain non-selective herbicide and nematicide research projects.
These transactions are now completed, except for the vegetable seeds business for which closing is expected in mid-August 2018.
BASF says customers benefit from the acquisition as they will have “access to even more tools to increase their yields, crop quality and profitability”.
Markus Heldt, president of BASF’s agricultural solutions division, says: “With strong solutions from seeds to harvest, enabled by even better R&D capabilities and scale, we will increase the competition in the market. This means customers have a real choice, today and in the future.
“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, BASF has renamed the division from Crop Protection to Agricultural Solutions.
In addition, the division has established a new global business unit for seeds and traits.