BASF Closes Acquisition of Bayer Businesses and Assets
BASF has closed its acquisition of businesses and assets from Bayer. The transaction resulted from divestments Bayer had to make in order to satisfy Department of Justice horizontal and vertical competition concerns regarding its purchase of Monsanto.
BASF officials say these acquisitions complement the German firm’s BASF’s crop protection, biotech, and digital farming activities and marks its entry into seeds, nonselective herbicides, and nematicide seed treatments.
“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,” said Martin Brudermüller, chairman of the board of executive directors and chief technology officer of BASF SE in a BASF news release.
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 ($8.88 billion), subject to certain adjustments at closing. About 4,500 employees join BASF through the acquisition.
The acquistions include:
- Bayer’s global glufosinate-ammonium business (LibertyLink)
- Seeds businesses including traits, research, and breeding capabilities
- Trademarks for key row crops in select markets
- The vegetable seeds business
- The R&D 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
- Certain nonselective 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 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.
To support the new seeds business, BASF is also hiring local seed experts across the U.S. with a concentration in the Midwest. “We have 35 open positions now and think we’ll have 70 to represent seed across the U.S.,” says Scott Kay, BASF vice president of U.S. agricultural solutions. “That should really put a spotlight on how committed we are to the growth of the seed business and providing options to farmers.”
Along with the technical expertise from seed experts, BASF is also hiring agronomists that will specialize in seed.