Germany bulk & specialty chemicals industry giant BASF is reportedly weighing an acquisition with Bayer for its vegetable seed business. Familiar sources revealed that the drugmaker Bayer’s vegetable seed business operating under the brand Nunhems® has a market valuation of over EUR 1.5 billion (USD 1.85 billion) including some assumed debt.
This move comes on the heels of Bayer’s intention to divest its vegetable seed business in context of its planned purchase deal worth USD 63.5 billion with Monsanto. In the BASF-Bayer deal the company assets that BASF would acquire include Bayer’s global seed businesses for key row crops and its glufosinate-ammonium herbicide business. The transactions would complete BASF’s crop protection business and also mark its growth in the seed business, fortifying its position in the bulk & specialty chemicals industry.
The deal also includes Bayer’s breeding capabilities and trait research for the row crops in specific markets and the LibertyLink® trait.
For the record, Bayer’s vegetable seeds business has over 1200 seed varieties in 25 vegetable crops.
Reliable reports cite that Bayer had earlier offered to divest the business and clinched an all-cash purchase deal in the month of October in 2017 to sell its herbicide and seed business to BASF for EUR 5.9 billion.
BASF also aims to propel its future seed platform and Agricultural Solutions Business. Expert cite that this transaction would prove beneficial for BASF to further enhance its position in the overall bulk & specialty chemicals industry.
In reference to a questionnaire, a BASF spokeswoman was quoted stating that the company has responded to the test questionnaire issued by the EU Commission on Bayer’s commitments. She further quoted that the firm is evaluating any remedy assets from the Bayer and Monsanto deal that may show an economic & strategic fit for BASF.