German pharmaceutical giant Bayer AG has reached a $7 billion deal to sell parts of its Crop Science unit to German chemical company BASF to alleviate regulatory concerns over its planned takeover of U.S. seed and weed-killer company Monsanto Co.
All three companies have operations in North Carolina.
Bayer Crop Science and BASF have significant operations in the Triangle.
About 300 Bayer employees in the Triangle could be affected, Bayer spokesman Jeff Donald told the Triangle Business Journal.
Monsanto last year accepted an offer from Bayer to pay $57 billion to its shareholders and assume $9 billion in debt.
Bayer said Friday it’s working with authorities with the aim of closing the deal by early 2018.
To “address certain overlaps in the combined product portfolio” of the companies, it says it will sell to BASF “essentially all of the company’s field crop seeds businesses,” and the Liberty herbicide brand.
“We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction,” explained Werner Baumann, Chairman of the Board of Management of Bayer AG. “At the same time, we are pleased that, in BASF, we have found a strong buyer for our businesses that will continue to serve the needs of growers and offer our employees long-term prospects.”
The transaction’s subject to regulatory approvals and the successful closing of the Monsanto acquisition.
Bayer’s assets to be sold
Here’s what Bayer is selling, according to the company:
“The assets to be sold include Bayer’s global glufosinate-ammonium business and the related LibertyLink technology for herbicide tolerance, essentially all of the company’s field crop seeds businesses, as well as respective research and development capabilities. The seeds businesses being divested include the global cotton seed business (excluding India and South Africa), the North American and European canola seed businesses and the soybean seed business. The transaction includes the transfer of relevant intellectual property and facilities, as well as more than 1,800 employees primarily in the United States, Germany, Brazil, Canada and Belgium. As part of the agreement, BASF has committed to maintain all permanent positions, under similar conditions, for at least three years after closing of the transaction.”