By Sarah Sloat
Bayer said Thursday that it has signed an agreement to sell further Crop Science businesses to BASF for up to 1.7 billion euros ($2.07 billion) as part of its planned acquisition of Monsanto.
These businesses generated sales of EUR745 million euros in 2017, Bayer said, and about 2,500 employees will transfer to chemicals company BASF as part of the deal. Bayer will use the proceeds--after taxes and adjustments--to help finance its proposed acquisition of Monsanto.
The businesses to be divested include the global vegetable-seeds business, certain seed-treatment products, the research platform for wheat hybrids and certain glyphosate-based herbicides in Europe that are predominantly used in industrial applications, Bayer said.
In addition, three research projects in the area of herbicides and Bayer's digital-farming business will be transferred to BASF. Bayer will receive a back license for certain digital-farming applications in return, it said.
Last year, Bayer and BASF had already reached an agreement for the sale of certain Crop Science businesses for EUR5.9 billion. The businesses in that package--including Bayer's glufosinate-ammonium business and related LibertyLink technology for herbicide tolerance, along with essentially all the company's field-crop seeds businesses--generated 2017 sales of EUR1.5 billion.
The deal is subject to regulatory approval and the successful closing of Bayer's acquisition of Monsanto.
Write to Sarah Sloat at [email protected]