Bayer will sell BASF separate lines of Crop Science for € 5.9 billion.19.10.2017
In connection with the planned acquisition of Monsanto, Bayer signed an agreement to sell BASF separate business lines of the Crop Science division for € 5.9 billion.
This is reported by the press service of Bayer.
Assets that are sold, brought the company in 2016 net turnover of about € 1.3 billion.
Bayer will use the net income from the announced disposition to partially refinance the planned acquisition of Monsanto.
«We are actively working to resolve potential regulatory issues in order to facilitate the successful completion of the transaction with Monsanto. At the same time, we are pleased that BASF has found a buyer for our enterprises that will serve the needs of farmers and will offer our employees long-term prospects», - said Werner Baumann, Chairman of the Board of Directors of Bayer AG.
The assets to be traded include the global ammonium glufosinate business and associated LibertyLink ™ technology, a significant part of the seed business, and the relevant research and development units. Other assets identified in the agreement are the global cotton seed business (excluding India and South Africa), the North American and European business of rape and soybean.
In addition, the agreement includes the transfer of relevant intellectual property and industrial facilities, as well as the transfer of more than 1,800 workers, mainly in the US, Germany, Brazil, Canada and Belgium.
As part of the agreement, BASF pledged to retain all established posts in compliance with the terms of employment for a minimum of 3 years after the signing of the agreement.
«Thanks to this transaction, we are using the opportunity to acquire extremely attractive assets in key cultures and markets. This business is an excellent addition to the portfolio of the BASF Group», - commented BASF Chairman Kurt Bock.
According to BASF, the President of the Plant Protection Division Markus Heldt noted that as experienced, dedicated and motivated specialists, new colleagues will enrich the team with their expertise in plant protection, seed and biotechnology in plant growing.
«Together we will build the long-term success of BASF, meeting the needs of farmers around the world», - said Marcus Heldt.