The Monsanto acquisition by Bayer has been one of the most talked about events/mergers in the agriculture industry lately. Following anti-competitive laws and measure, Bayer was supposed to divest some of its undertaking, to get a go ahead nod for the merger with Monsanto. After merging with Monsanto, Bayer will be the biggest Agro-chemical firm. According to sources, by August 2018, all the current assets of Nunhems which is currently possessed by Bayer will be taken over by BASF. 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 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.
“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,” explained Markus 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.