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BASF to acquire Bayer seeds, herbicide businesses for nearly $7 billion

Bayer has signed an agreement to sell some of its crop science businesses to BASF for nearly $7 billion.

The Chairman of the Board of Management of Bayer AG says the company signed the agreement to address any potential regulatory concerns and prevent any obstacles in closing Bayer’s acquisition of Monsanto.

BASF will buy parts of Bayer’s herbicide and field crop seeds businesses, including LibertyLink technology for herbicide resistance, its global cotton seed business, North American and European canola seed businesses, and Bayer’s soybean seed business.

The acquisition includes more than 1,800 employees. BASF says it will keep all permanent positions for at least three years. The transaction also includes intellectual property and facilities.

Bayer will continue to own and operate the businesses until the closing of the divestiture.

Bayer says the proceeds of the sale will be used to refinance the acquisition of Monsanto, which is planned for early 2018, if approved by regulators.