Economy

Bayer sells units to be able to complete Monsanto takeover

Bayer sells units to be able to complete Monsanto takeover”

The transaction's subject to regulatory approvals and the successful closing of the Monsanto acquisition.

German pharmaceutical giant Bayer AG has reached a 5.9 billion euro ($7 billion) deal to sell parts of its Crop Science unit to German chemical company BASF to alleviate regulatory concerns over its planned takeover of US seed and weed-killer company Monsanto Co.

The transaction also includes Bayer's trait research and breeding capabilities for these crops and the LibertyLink trait and trademark.

The units included in the deal brought in revenues of around 1.3 billion euros in 2016, with five factories, 10 research and development sites and strong positions in staple crops like soybeans, oilseed rape and cotton, especially in the Americas. These employees are primarily located in the US, Germany, Brazil, Canada and Belgium, the company said.

"With this investment, we are seizing the opportunity to acquire highly attractive assets in key row crops and markets", Kurt Bock, the BASF chairman said. That will be the largest all-cash deal of all time if it goes through and would create a company that controls more than a quarter of the total world market for seeds and pesticides. "The acquisition will further enhance our agricultural solutions offer, which is a core pillar of BASF's portfolio".

German pharmaceutical company Bayer said that the assets to be sold include its global glufosinate-ammonium business and related LibertyLink technology for herbicide tolerance, nearly all its field-crop seeds businesses, as well as respective research-and-development capabilities.

More than 1,800 commercial, R&D, breeding and production personnel shall transfer from Bayer to BASF. "We are very grateful to our employees, who have played a key role in the success of these businesses over the years", said Baumann.

Bayer, the Leverkusen-based multinational that specializes in pharmaceuticals and chemicals, recently agreed a €56 billion takeover of USA seeds company Monsanto and the deal with BASF is part of their plan to divest themselves of assets in order to fund the Monsanto deal and improve their chances of gaining regulatory approval.

Bayer will continue to own, operate and maintain these businesses until the closing of this divestiture, according to the Bayer news release.

Bayer's acquisition of Monsanto is under review by antitrust authorities.



Like this

loading...
loading...

Latest


13 October 2017
Ajimobi urges speedy completion of FG's projects in S-West
Akande said the party is ready to put an end to the reign of the Peoples Democratic Party, PDP in Ekiti State particularly. Restructuring is not in the APC constitution or manifesto", he said.

13 October 2017
Iraqi Kurds Deploy Extra Forces Near Kirkuk as Tensions Spiral
The surge in tensions comes two weeks after Kurdish voters overwhelmingly backed independence in a non-binding referendum that the federal government condemned as illegal.

13 October 2017
Bryan Nehman On US Soccer Not Going To The World Cup
There is no position in which the United States did not have a more talented player than Trinidad and Tobago Tuesday night. Non-MLS clubs have also increased scholarship funding for their players over the years to remain competitive in the DA.

13 October 2017
Officer shot in New Orleans East, NOPD says
The officer, assigned to New Orleans' 7th District, was on routine patrol along with three other officers shortly after midnight. Paramedics took the officer to University Medical Center, and he died there, Harrison said.

13 October 2017
Uber files appeal against Transport for London
The app enables users to book cars using their smartphones and is available in more than 40 towns and cities across the UK. We use cookies to give you the best experience on our website and bring you more relevant advertising.

13 October 2017
Theresa May expresses full confidence in Chancellor Philip Hammond
The Chancellor said: "I will be in the USA this week to demonstrate that Global Britain is not just a phrase, it is a reality. At a press conference in the Foreign Office, Johnson said it was right to make preparations "as and when it is necessary".

13 October 2017
Nadal eases into last eight of Shanghai Masters
The Spaniard eased past Fabio Fognini of Italy in the Chinese city, winning 6-3, 6-1 at the Qizhong Forest Sports City Arena . While a Nadal-Federer final looms, Argentina's Juan Martin del Potro could ruin the script, as he did at the U.S.

13 October 2017
For Your Information: Domestic Violence Awareness with Haven House
The organization has a number of services that are free and confidential to all victims of any crime. For after hours, there is a 24 hour helpline which can be reached at 1-888-560-6027.

13 October 2017
Oppo F3 Lite With 16-Megapixel Front Camera Launched: Price, Specifications
Unfortunately, much to the disappointment of fans, the F3 Lite device runs a dated Android 6.0 Marshmallow, out-of-the-box. A micro USB port is present at the bottom of the phone, and it has sensors such as light sensor, gyroscope, and e-compass.

13 October 2017
Roswell: Series Reboot in the Works at The CW
The plotline also centers on the daughter of an immigrant who later on discovers that her teenage crush is a police officer. After that, the TV series created much of its own mythology, deviating in numerous ways from the books.