By Natalia Drozdiak
MarketWatch photo illustration/Shutterstock
Bayer AG on Friday said it has agreed to sell parts of its crop-science business to rival BASF /zigman2/quotes/204280060/delayed DE:BAS +1.39% for 5.9 billion euros ($6.98 billion), a bid to assuage regulators as the German chemical conglomerate seeks approval for its $57 billion acquisition of U.S. seed maker Monsanto Co.
Bayer /zigman2/quotes/210533053/delayed DE:BAYN -0.37% said it would use the net proceeds from the transaction to partially refinance the purchase of Monsanto , a deal struck last year that is set to create an industrial powerhouse and tilt the German company heavily toward agriculture in a long-range bet on high-tech crops.
But the megadeal still faces scrutiny from U.S., European and other antitrust regulators.
“We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction,” said Werner Baumann, Bayer’s chief executive.
Under the deal announced Friday, BASF will acquire Bayer’s manufacturing sites for glufosinate-ammonium production and formulation in Germany, the U.S. and Canada; its seed-breeding facilities in the Americas and Europe; and its trait-research facilities in the Americas and Europe.
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