BASF Concern, a leading global manufacturer of crop protection agents, has signed an agreement to acquire significant parts of Bayer's seed and non-selective herbicide businesses for EUR 5.9 billion.

BASF said in a press release that Bayer intends to divest these assets in the context of its planned acquisition of Monsanto.

"The assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business, commercialized under the Liberty®, Basta® and Finale® brands, as well as its seed businesses for key row crops in select markets: canola hybrids in North America under the InVigor® brand using the LibertyLink® trait technology, oilseed rape mainly in European markets, cotton in the Americas and Europe as well as soybean in the Americas," BASF said.

For the full year 2016, sales of the business to be purchased from Bayer amounted to around EUR 1.3 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) to around EUR 385 million.

The transaction is subject to the closing of Bayer's acquisition of Monsanto and approval by relevant authorities. It is expected to close in the first quarter of 2018.

More than 1,800 commercial, R&D, breeding and production personnel shall transfer from Bayer to BASF. These employees are primarily located in the United States, Germany, Brazil, Canada and Belgium.

Furthermore, BASF will acquire the manufacturing sites for glufosinate-ammonium production and formulation in Germany, the United States, and Canada, seed breeding facilities in the Americas and Europe as well as trait research facilities in the United States and Europe.

"With this investment, we are seizing the opportunity to acquire highly attractive assets in key row crops and markets. 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," Chairman of the Board of Executive Directors of BASF SE, Dr. Kurt Bock, said.