Ger­many’s BASF buys the veg­etable seeds busi­ness from Bayer for $8.8b

The East African - - THE MARKET WHISPERER -

Ger­many chem­i­cal com­pany BASF has com­pleted the ac­qui­si­tion of the veg­etable seeds busi­ness from Bayer at an es­ti­mated cost of $8.8 bil­lion. Bayer’s global veg­etable seeds busi­ness mainly op­er­ates un­der the brand Nun­hems. The trans­ac­tion which was con­cluded last week, adds a renowned brand to BASF’S port­fo­lio. The veg­etable seeds busi­ness is ex­pected to en­hance BASF’S global of­fer to farm­ers and strengthen its seed plat­form. It will also com­ple­ment BASF’S re­cently ex­panded Agri­cul­tural Solutions port­fo­lio, which in­cludes seeds and traits, chem­i­cal and bi­o­log­i­cal crop pro­tec­tion, soil man­age­ment, plant health, pest con­trol and dig­i­tal farm­ing. The veg­etable seeds busi­ness com­prises 24 crops and about 2,600 va­ri­eties. It also in­cludes strong re­search and development and breed­ing sys­tems with over 100 unique breed­ing pro­grammes in more than 15 crops. The trans­ac­tion com­pletes BASF’S ac­qui­si­tion of a sig­nif­i­cant range of busi­nesses and as­sets with com­bined 2017 sales of $2.5 bil­lion. EAST AFRICA is set to act as the fo­cal point for the newly in­te­grated CFAO Group Africa, fol­low­ing a de­ci­sion by its par­ent com­pany Toy­ota Tsusho Cor­po­ra­tion to in­te­grate its op­er­a­tions on the con­ti­nent.

The in­te­gra­tion, which kicked off eight months ago, has created a con­glom­er­ate of 140 com­pa­nies with a pres­ence in 53 African coun­tries, and 15 pro­duc­tion fa­cil­i­ties.

Group chair­man and CEO Richard Bielle said the com­pany plans to in­crease its local man­u­fac­tur­ing, as­sem­bly and value-ad­di­tion ca­pac­ity.

“Our busi­ness model is to con­trol the value chain as much as we can from the plant to the cus­tomer,” said Mr Bielle.

CFAO Group has in­ter­ests in the au­to­mo­tive sec­tor, health­care, en­ergy, in­fra­struc­ture development, agri­cul­ture, man­u­fac­tur­ing, tech­nol­ogy and fast-mov­ing con­sumer goods. In Kenya and the re­gion, CFAO will op­er­ate eight main com­pa­nies: DT Do­bie, Toy­ota Tsusho East Africa, Tyre Dis­trib­u­tors Africa, Toy­ota Tsusho Fer­tiliser Africa, Tsusho Cap­i­tal, Toy­ota Tsusho Auto Mart Kenya, La­borex Kenya and Toy­ota Kenya.

Kenya coun­try rep­re­sen­ta­tive Den­nis Awori said CFAO plans to ex­pand across the re­gion through strate­gic part­ner­ships and in­vest­ment in in­fra­struc­ture.

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