Bayer CropScience Open to Acquisitions to Build Crop Science Division
After Monsanto’s $46 billion takeover attempt of Syngenta collapsed, Bayer chief executive, Marijn Dekkers said that Bayer is interested in acquisitions and partnerships that would build up its crop science business.
The announcement also comes on the heels of the €1.5 billion (US$1.7 billion) initial public offering (IPO) of Bayer’s plastics unit, Covestro, which has shifted Bayer’s focus away from chemicals and more toward life sciences, and has given the group an available war chest to fund its ambitions.
“We are very committed to our crop science business and have no intention of selling it,” Mr. Dekkers told the Financial Times. “The question then becomes do you want to add to it? And I would say, yes, if there are appropriate opportunities we would be interested.”
There is speculation that the space is destined for disruption in the wake of the failed Syngenta takeover by Monsanto, as Monsanto is now seeking out alternative acquisitions and Syngenta is working to shore up its position and re-instill investor confidence. And although Mr. Dekker would not allude to any specific targets, there is speculation that Bayer could be looking at Syngenta’s vegetable seed business that was placed on the market in September and valued at between $2 billion and $3 billion.