BERLIN, Oct. 13 (Xinhua) -- BASF SE, the world's largest chemicals producer, has announced the acquisition of "significant parts" of Bayer's seeds and non-selective herbicide business for 5.9 billion euros (7 billion U.S. dollars) on Friday.
BASF Chief Executive Officer (CEO) Kurt Bock said that he was "seizing the opportunity" to purchase the assets in question. "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", he added.
Ludwigshafen-based BASF had previously lacked its own seeds business. The firm said in a statement on Friday that its purchase of parts of Bayer's business underlined its "commitment to agriculture, innovation and long-term growth."
"We are pleased that, in BASF, we have found a strong buyer for our business" a separate statement by Bayer CEO Werner Baumann read.
Bayer is under pressure from European Union competition authorities to shed assets in order to gain regulatory approval for its recently revealed takeover of Monsanto for 55 billion euros. The firm will become the globally biggest supplier of seeds and crop sprays in the agricultural industry if the deal is concluded.
On Friday, Bayer CEO Baumann reiterated that his company was "taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction."
By contrast, BASF is the only large firm in the chemicals industry not to have been involved in what the "Financial Times" described as a "wave of mega-mergers."
The Bayer businesses bought by BASF recorded sales of roughly 1.3 billion euros in 2016 and employed 1,800 staff. BASF voiced confidence that the all-cash transaction could be completed by the first quarter of 2017 if Bayer's acquisition of Monsanto is approved.
The EU began assessing the implications of Bayer's acquisition of Monsanto in August and is currently gathering the information needed to conduct an in-depth probe. (1 euro = 1.18 U.S. dollars)
