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BASF Completes Acquisition of Bayer Agricultural Businesses in Two Closings

BASF completed its Bayer agricultural-business acquisition in two closings in August 2018. The principal package transferred August 1; the vegetable-seeds business followed August 16.
From TheFinanceBase Team2 min to read
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BASF completed its acquisition of Bayer agricultural businesses and assets in two closings: the principal package on August 1, 2018, and the vegetable-seeds business on August 16. BASF announced an all-cash purchase price of €7.6 billion, subject to adjustments at closing; the available announcements do not establish the final adjusted amount paid.

When did BASF close the Bayer acquisition?

BASF said it signed agreements in October 2017 and April 2018 to acquire businesses and assets Bayer was divesting in connection with Bayer’s acquisition of Monsanto. The transfer was not a single-day handover of every asset: BASF announced two closings.

Date What closed Status
August 1, 2018 The principal businesses and assets in the transaction The vegetable-seeds business remained outstanding. BASF expected it to close in mid-August. BASF announcement, August 1, 2018.
August 16, 2018 The global vegetable-seeds business This closing completed the broader acquisition. BASF announcement, August 16, 2018.

What did BASF buy from Bayer?

The acquired portfolio covered crop inputs, seeds, research and digital farming. BASF’s August 1 announcement described the package as including:

  • Bayer’s global glufosinate-ammonium business.
  • Seed businesses, traits, research and breeding capabilities, and trademarks for key row crops in select markets.
  • The vegetable-seeds business, which closed separately on August 16.
  • An R&D platform for hybrid wheat and certain seed-treatment products.
  • Certain glyphosate-based herbicides in Europe, used predominantly for industrial applications.
  • The complete xarvio digital farming platform.
  • Certain research projects involving non-selective herbicides and nematicides.

The qualifiers matter: the row-crop seed scope was limited to select markets, and the herbicides and research projects were described as certain businesses or projects—not as all Bayer products in those categories.

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Vegetable-seeds business

In its August 16 announcement, BASF described the acquired vegetable-seeds business as covering 24 crops and about 2,600 varieties. BASF also reported that the business had more than 100 breeding programs across more than 15 crops. These figures describe the scope BASF announced for the business, not a measure of its subsequent performance.

How much did BASF pay?

BASF announced an all-cash purchase price of €7.6 billion, subject to certain adjustments at closing. That is the announced price, not a confirmed final adjusted consideration: the cited closing announcements do not state the final amount paid.

The August 16 release separately reported that the significant businesses and assets acquired had combined sales of €2.2 billion in 2017. That figure is historical sales, not the purchase price.

How many employees joined BASF?

BASF said about 4,500 employees joined its Agricultural Solutions team through the acquisition. This is the company’s reported figure in its August 1 announcement.

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Why did BASF say it wanted the businesses?

BASF presented the acquisition as a way to complement its existing crop-protection, biotechnology and digital-farming activities, while entering seeds, non-selective herbicides and nematicide seed treatments. The company said the expanded portfolio would offer customers more solutions and create new opportunities for innovation and growth; these were BASF’s stated expectations, not independently verified outcomes.

At the time, BASF Chairman and Chief Technology Officer Dr. Martin Brudermüller described the move as adding assets and strengthening the company’s innovation potential. Markus Heldt, then president of BASF’s Agricultural Solutions division, said the expanded offer and research capabilities would increase competition in the market. Those statements express the company’s rationale for the transaction.

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