Bayer AG is selling its crop divisions to BASF for 5.9 billion euros as part of regulatory compliance to close its deal with Monsanto, Bayer said in a statement .
“We are taking a proactive approach to addressing potential regulatory concerns to facilitate the successful completion of the Monsanto deal,” Bayer Chairman Werner Baumann said in the release. Bayer will sell the global pesticide business and its associated herbicide tolerance technology business, which are key to all seed divisions.
The deal involves the transfer of intellectual property and property, as well as more than 1.8 thousand employees, mainly in the USA, Germany, Brazil, Canada and Belgium. The company also said it will continue to work with regulators to close its planned deal with Monsanto by early 2018. The company is currently awaiting regulatory approval for the deal with BASF.
In September, it became known that Bayer was going to acquire Monsanto for $ 66 billion. According to the comprehensive assessment, the synergy will contribute $ 1.5 billion to EBITDA annually three years after the completion of the deal. The end of the deal was initially expected by the end of this year.
Concern Bayer AG, founded in 1863, represents over 300 companies in different countries, the range of products includes about five thousand items in the field of health care, plant protection products and high-tech materials. Bayer’s best-known brands include Aspirin, Alka-Seltzer and Supradyn.
BASF is a German company that produces chemicals, plastics, specialty products, crop protection products, and its subsidiaries are engaged in oil and gas production. The company operates in more than 80 countries around the world, the number of employees of the group exceeds 114 thousand people. At the end of 2016, BASF had sales of around 58 billion euros.