Bayer has moved a step closer to completing its acquisition of Monsanto by selling more of its crop science businesses to BASF for €1.7bn.
The Leverkusen-based multinational has been forced to fulfil a number of European Commission criteria to ensure its Monsanto deal, worth an enormous $66bn, can go ahead it.
Now it has confirmed the divestment of a range of businesses to BASF, including its global vegetable seeds business and its digital farming business, for a base purchase price of €1.7bn.
The transaction includes the transfer of some 2,500 employees, around 150 of them in Germany. As part of the agreement, BASF has committed to maintain all permanent positions, under similar conditions, for at least three years after closing of the transaction.
"With this move, we are implementing the corresponding undertakings made to the European Commission and other regulatory authorities to allow the successful closing of the Monsanto transaction," explained Werner Baumann, Chairman of the Board of Management of Bayer AG.
"In BASF, we are pleased that, for these businesses too, we have found a strong buyer that will continue to serve the needs of growers and offer our employees long-term prospects."