BASF announced Oct. 13 that it has signed an agreement to acquire significant parts of Bayer’s seed and non-selective herbicide businesses as part of Bayer’s divestment of assets necessary to acquire Monsanto.

The all-cash purchase price is €5.9 billion ($6.98 billion), subject to certain adjustments at closing. The transaction is subject to the closing of Bayer’s acquisition of Monsanto and approval by relevant authorities, which is expected to close in the first quarter of 2018.

The assets to be acquired include Bayer’s global glufosinate-ammonium non-selective herbicide business, which is commercialized under the Liberty, Basta and Finale brands, as well as its seed businesses for key row crops in selected 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 soybeans in the Americas. The transaction also includes Bayer’s trait research and breeding capabilities for these crops and the LibertyLink trait and trademark.

For the full year of 2016, sales of the business to be purchased from Bayer amounted to around €1.3 billion, and earnings were around €385 million.

“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,” said Dr. Kurt Bock, chairman of the board of executive directors of BASF SE. “The acquisition will further enhance our agricultural solutions offer, which is a core pillar of BASF’s portfolio.”

The acquisition complements BASF’s crop protection business, strengthening the company’s herbicide portfolio and marking its entry into the seed business with proprietary assets in key agricultural markets.

“Building on the competent new team members and the enhanced portfolio, we will offer farmers a greater choice of solutions addressing their needs for high-quality seeds, chemical and biological crop protection,” explained Saori Dubourg, member of the BASF SE board of executive directors and responsible for the Agricultural Solutions segment. “Moreover, this transaction will create new opportunities for future growth and strengthen our global innovation potential.”

More than 1,800 commercial, research and development, breeding and production personnel will transfer from Bayer to BASF. These employees are primarily located in the U.S., Germany, Brazil, Canada and Belgium.

BASF will also acquire the manufacturing sites for glufosinate-ammonium production and formulation in Germany, the U.S. and Canada, seed breeding facilities in the Americas and Europe and trait research facilities in the U.S. and Europe.

“We look forward to welcoming our new colleagues to BASF. As highly experienced, dedicated and motivated professionals, they will enrich our team with their expert knowledge in crop protection, seeds and traits. Together, we will shape the long-term success of BASF, serving the needs of farmers around the globe,” Markus Heldt, president of BASF’s Crop Protection division, said.