Bayer is on target for the $ 62.5 billion acquisition of Monsanto. However, the group must buy its world market leader position expensive. The US Department of Commerce's $ 9 billion investment has yet to be fulfilled. Then the largest seed and pesticide manufacturer in the world is created.
A Bayer spokesman said they plan to sell BASF investments worth € 2.2 billion.
The new agricultural company would then have a turnover of 20 billion USD, based on the sales figures of 2017 and deducting the required holdings.
In comparison and at current exchange rates, competitors DowDuPont have sales of 12.4 billion, ChemChina's Syngenta $ 11 billion and BASF $ 7.9 billion.
Bayer's plans to merge its agricultural chemicals division with the world's second largest plant breeding company is the latest merger action by world market companies in the agrochemical industry.
The US giant Dow Chemical merged with DuPont in September 2017, the new company is now splitting back into three units. China's state-owned ChemChina bought Syngenta and two major Canadian fertilizer companies and now calls itself Nutrien.
Bayer agreed to sell its full exposure to cotton, rapeseed, soybeans, and vegetable seed, as well as its Digital Farming project. In addition, his company Liberty Herbicide, which competes with Monsanto Roundup.
According to the specifications of European and other antitrust authorities, Bayer agreed to sell 7.6 billion euros to its competitor BASF with annual sales of 2.2 billion euros.
Bayer announced in a press release that the integration of Monsanto will start as soon as the sales to BASF are certified. That could be the case in two months' time.
Bayer can not be sure of this deal yet, because Monsanto could still refuse to sell if a higher bid comes before June 14th.
In addition to US approval, Bayer already has the approval of the Ministries of Justice of the European Union, Brazil and Russia. The countries of Canada and Mexico must also declare their consent.
In addition, the European Commission approved BASF's buyers of Bayer's shareholdings yesterday.
Bayer predicted last week that the acquisition of Monsanto would save us $ 300 annually through synergies.That was less than in the target planning. One had not expected to have to give up so many holdings.
Text: HANSA Derivatives Trading GmbH /
