Bayer sells plant science unit to BASF for Monsanto acquisition

Bayer AG will sell the plant science unit to acquire Monsanto. The pharmaceutical giant based in Leverkusen on Friday said it would sell some of its agriculture business to BASF SE and start its seed market. The US$66 billion Bayer-Monsanto merger will be a giant seed of plants and pesticides worldwide.

Tinuku Bayer sells plant science unit to BASF for Monsanto acquisition

"We are taking an active approach to dealing with potential regulatory issues in order to facilitate the Monsanto deal," said Bayer CEO Werner Baumann.

The deal means Bayer sells plant seed units, glufosinate ammonium herbicide, related research and development activities, and intellectual property to BASF for 5.9 billion euros (US$7 billion). The proceeds of the sale will lead to refinancing of bids for the acquisition of Monsanto.

The deal will create a global seed company and a giant pesticide with annual revenues of about 23 billion euros and 140,000 employees as a dominant force on the food chain. Bayer and Monsanto have a large market share in which their products compete with each other.

BASF purchases on Bayer units will not continue unless the Monsanto deal is approved. The units in the deal include 5 factories, 10 research sites, and soybean crop business, seed oil and cotton which all generate revenues of about 1.3 billion euros by 2016.