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BASF to buy seeds, herbicide businesses from Bayer for $7 billion

Staff Writer |
BASF has agreed to buy seed and herbicide businesses from Bayer for 5.9 billion euros ($7 billion) in cash.

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Bayer is trying to convince competition authorities to approve its planned acquisition of Monsanto.

Bayer had offered to sell assets worth around $2.5 billion. The European Commission said in August that the divestments offered by Bayer so far did not go far enough and started an in-depth investigation of the deal.

Bayer has to sell the LibertyLink-branded seeds and Liberty herbicide businesses because they compete with Monsanto’s Roundup weed killer and Roundup Ready seeds.

BASF will finance the acquisition through a combination of cash on hand, commercial paper and bonds. It expects the acquisition to add to its earnings by 2020.

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