Mar 13, 2018Bayer reports it’s in sale talks with BASF for veg seed business
According to a report from Dow Jones, Bayer AG (BAYN.XE) is in exclusive talks with BASF SE (BAS.XE) about the sale of its entire vegetable-seeds business, a move it expects to help it win approval for its acquisition of Monsanto Co. (MON).
“Through this and related moves, Bayer is confident of fully addressing all concerns of the European Commission,” the company said.
The European antitrust regulator, which has raised concerns that the Monsanto acquisition could pressure farmers, is expected to make its decision on the Monsanto deal by April 5, though it could issue a ruling earlier.
Bayer had already agreed to sell selected crop-science businesses to BASF for 5.9 billion euros ($7.30 billion) last October. This first deal covers Bayer’s global glufosinate-ammonium business and the related LibertyLink technology for herbicide tolerance, essentially all of the company’s field-crop seed businesses, and the respective research and development capabilities, it said.
Bayer didn’t provide financial details on the potential deal with BASF. It said any sales and licenses would be subject to a successful closing of the proposed Monsanto acquisition, which remains subject to customary closing conditions, including receipt of required regulatory approvals.
Bayer is working with the authorities worldwide to close the transaction in the second quarter.