BASF launches in the seed, by repurchasing a part of the activity of Bayer

To achieve its acquisition of the american Monsanto, Bayer made the sacrifices, and the competition jumped on the deal. While he was up here away from the seed, BASF, the number three global agrochemical industry, has completed the repurchase of a portion of the activities of seed and herbicide from Bayer for € 5.9 billion in cash, announced the two chemical groups in German on Friday.

“With this investment, we seize the opportunity to acquire assets very attractive in markets and cultures of the first plan,” says Kurt Bock, chairman of the management board of BASF. This will be an addition to the strategic to the recognized skills of BASF in the crop protection and our own operations in biotechnology.”

BASF chose to specialize in the study of the characteristics of plants, such as their resistance to drought, but the purchase by Bayer of the american Monsanto for $ 66 billion (56 billion euros) is a bargain for the competition as this gives him the opportunity to reclaim assets that Bayer must sell to satisfy competition authorities.

The more than 1,800 jobs will be maintained

The sale of seed, LibertyLink and the herbicide Liberty, which have achieved a turnover of around 1.3 billion euros in 2016, represents, in itself, a good portion of the assets that Bayer shall assign to complete the acquisition of Monsanto. Bayer has stated that it would use the proceeds from this sale to refinance in part the acquisition of Monsanto and that he continued to cooperate with the authorities concerned in order to complete the redemption of the american early 2018. In fact, the agreement with BASF is conditioned to the completion of the repurchase of Monsanto, said the two chemists.

The agreement also provides that more than 1,800 employees working in the United States, Germany, Brazil, Canada and Belgium will be transferred to BASF, which is committed to maintain all of the permanent jobs to the same conditions for at least three years after the conclusion of the transaction.

Action, Bayer is gaining 0.7% in pre-Trading, the best gain in the index, Dax-30, depending on the broker Lang & Schwarz. On the contrary, BASF realized the biggest loss of the DAX, assignor to 0.9%.

(with Reuters)

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