BASF in talks to buy Bayer’s vegetable seed operations

Last week, FoodIngredientsFirst reported how the Bayer-Monsanto deal has been facing some tough EU scrutiny over the last few months and that speculation is mounting that the “mega-merger” will get the green light as Bayer committed to selling its entire vegetable seed business to win over the antitrust approval and seal the US$60bn-plus deal.

And now in another announcement, BASF confirms that although definitive agreements have not been concluded, BASF plans to enhance its future seed platform and strengthen the market position of its agricultural solutions business with this transaction.

Last October, BASF signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses. The all-cash purchase price is €5.9 billion, subject to certain adjustments at closing.

The assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business as well as its seed businesses for key row crops in select markets: 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.

This acquisition complements BASF’s crop protection business and marks its entry into the seed business with proprietary assets in key agricultural markets, according to the company.

The vegetable seed business of Bayer operates under the brand Nunhems and its portfolio consists of varieties in 25 vegetable crops, including carrot, cucumber, leek, lettuce, melon, onion, pepper, tomato and watermelon.

Speaking at a financial news conference held in Leverkusen last week, Bayer Chief Executive Werner Baumann said the company has taken “major steps” towards the proposed acquisition of Monsanto.

“We have now also committed to divest our entire vegetable seed business. Certain additional business activities of Bayer and Monsanto may also be sold or out-licensed,” he said.

“Thus Bayer is actively addressing observations expressed by antitrust authorities. Any sales and licenses would be subject to a successful closing of the proposed acquisition of Monsanto, which remains subject to customary closing conditions, including receipt of required regulatory approvals.”