Bayer sold parts of its seed and herbicide businesses as part of its Monsanto acquisition
By Diego Flammini
News Reporter
Farms.com
BASF’s recent acquisition of parts of Bayer’s seed and non-selective herbicide businesses means the company is moving into unchartered waters, according to Ron Kehler, business director with BASF Canada.
“This is a really exciting and excellent opportunity for us to enter the seed market,” he told reporters during today’s conference call.
“We haven’t been in the seed business in the past.”
BASF announced on Oct. 13 a €5.9 billion ($US6.9 billion) agreement to purchase Bayer’s InVigor brand seeds, LibertyLink trait technology and trademark.
The acquisition includes canola hybrids, oilseed rape, cotton and soybeans.
In addition, the agreement includes Bayer’s global glufosinate-ammonium non-selective herbicides, known commercially as Liberty, Basta and Finale.
These acquisitions reflect BASF’s commitment to providing farmers with as many tools as possible, Kehler said.
“These additions to our portfolio will offer growers a greater choice of BASF solutions that are important to their farming operations,” he said.
“Our goal is to carry out a seamless transition that allows BASF to ensure supply security for our customers.”
The deal not only includes the commercial products but also the intellectual property and patents associated with those products.
BASF now has access to about 250 patent families, which will allow the company to position itself nicely for future developments.
And the researchers responsible for developing these patents and traits will also become part of the BASF workforce, Kehler said.
“More than 1,800 employees from commercial, (research and development), breeding and production will transfer from Bayer to BASF,” he said, adding about 300 people work in facilities in Regina and Saskatoon, Sask. and Lethbridge, Alta.
The deal between Bayer and BASF is subject to the closing of Bayer’s acquisition of Monsanto, scheduled for the first quarter of 2018.
Agribusiness mergers and acquisitions have been a trending topic over the last year.
And being involved in these agreements ensures companies are on the cutting edge of ag advancements, Kehler said.
“Certainly the price to be in this business continues to go up,” he said.
“It requires investments that big companies are able to make to drive and find those new innovations. We’re now able to fund more work in traits and continue to do (our) work on herbicides.”