By Jessica Domel
Multimedia Reporter

The world’s largest chemical company is making its foray into the seed business.

BASF recently announced it has signed an agreement to buy significant parts of Bayer’s seed and non-selective herbicide businesses.

“With this investment, we are seizing the opportunity to acquire highly attractive assets in key row crops and markets. It will be a strategic complement to BASF’s well-established and successful crop protection business, as well as to our own activities in biotechnology,” Dr. Kurt Bock, chair of the board of executive directors of BASF SE, said. “The acquisition will further enhance our agricultural solutions offer, which is a core pillar of BASF’s portfolio.”

Bayer is selling the lines in hopes of gaining regulatory approval for its takeover of Monsanto Company.

BASF’s multi-billion acquisition will include Bayer’s global glufosinate-ammonium non-selective herbicide business sold under the brands Liberty, Bastia and Finale.

Also included are the following Bayer seed lines: canola hybrids in North America sold under the InVigor brand, oilseed rape in European markets, cotton in the Americas and Europe and soybeans in the Americas.

“Building on the competent new team members and the enhanced portfolio, we will offer farmers a greater choice of solutions addressing their needs for high-quality seeds, chemical and biological crop protection,” Saori Dubourg, member of the board of executive directors of BASF SE and responsible for the Agricultural Solutions segment, said. “Moreover, this transaction will create new opportunities for future growth and strengthen our global innovation potential.”

Bayer’s trait research and breeding capabilities for those seed lines, as well as the LibertyLink trait and trademark, are part of the deal.

The all-cash purchase price for the deal is 5.9 billion euros, which is about $6.9 billion.

Last year, the businesses involved in the transaction were said to have brought in around $1.53 billion in earnings before interests, tax, depreciation and amortization.

More than 1,800 commercial, research and discovery, breeding and production personnel from the U.S., Germany, Brazil, Canada and Belgium will transfer from Bayer to BASF.

The purchase transaction is subject to regulatory approval and the closing of the Bayer-Monsanto merger.

BASF expects the deal to close in the first quarter of 2018.