BASF Closes on Bayer Assets, Launches Agricultural Solutions Division
August 1, 2018 BASF hosted a conference call for global ag media this afternoon to announce the official close of its “acquisition of a range of businesses and assets” from fellow German multinational Bayer.
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 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; as well as certain non-selective herbicide and nematicide research projects.
“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 Dr. Martin Brudermüller, Chairman of the Board of Executive Directors and Chief Technology Officer of BASF SE.
“This acquisition transforms BASF in agriculture. It strengthens our market position in agricultural solutions and creates new opportunities for growth,” added Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Agricultural Solutions segment. “We are looking forward to our joint journey and warmly welcome the new colleagues to BASF.”
“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,” 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.”
Other notables from the release & conference call:
- About 4,500 employees join BASF as a result of the transaction.
- The €7.6 billion Euros sale price translates to just under $9 billion U.S.
- BASF’s global R&D investment now surpasses $1 billion annually.
- $2.2 billion dollar total revenue increase annually as a result of the deal, the majority of that growth coming from the North America region.
- 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.
- BASF expects to close its previously reported acquisition of Bayer’s vegetable seed business in mid-August 2018.
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