BASF To Buy Certain Assets From Bayer In EUR 5.9 Bln Cash Deal

(RTTNews) - German chemicals giant BASF SE (BFA.L, BASFY.PK) Friday said it has signed an agreement to acquire significant parts of seed and non-selective herbicide businesses of German conglomerate Bayer AG (BAYZF.PK, BAYRY.PK, BYR.L). The all-cash purchase price is 5.9 billion euros, subject to certain adjustments at closing. For Bayer, the divestment is part of its planned acquisition of Monsanto.

The transaction is subject to the closing of Bayer's acquisition of Monsanto and approval by relevant authorities. It is expected to close in the first quarter of 2018.

In its statement, BASF said the assets to be acquired include Bayer's global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty, Basta and Finale brands, as well as its seed businesses for key row crops in select markets.

These include canola hybrids in North America under the InVigor brand using the LibertyLink trait technology, oilseed rape mainly in European markets, cotton in the Americas and Europe as well as soybean in the Americas. The transaction also includes Bayer's trait research and breeding capabilities for these crops and the LibertyLink trait and trademark.

For the full year 2016, sales from these assets amounted to around 1.3 billion euros and EBITDA to around 385 million euros.

BASF said the agreed acquisition would expand its crop protection business and its biotechnology activities by a substantial seed business. It will also strengthen the company's existing herbicide portfolio.

With the acquisition, more than 1,800 commercial, R&D, breeding and production personnel shall transfer from Bayer to BASF. These employees are primarily located in the United States, Germany, Brazil, Canada and Belgium.

In addition, BASF will acquire the manufacturing sites for glufosinate-ammonium production and formulation in Germany, the United States, and Canada, seed breeding facilities in the Americas and Europe as well as trait research facilities in the United States and Europe.

In Germany, BASF shares were trading at 88.55 euros, down 0.85 percent. Bayer shares were trading at 118.50 euros, up 1.46 percent.