BASF Won't Book Savings From Bayer's Agricultural Assets
May 04 2018 - 5:25AM
Dow Jones News
By Olaf Ridder
BASF SE (BAS.XE) doesn't anticipate any significant savings
following the integration of Bayer AG's (BAYN.XE) agricultural
businesses, Chief Financial Officer Hans-Ulrich Engel said
Friday.
European regulators recently gave the green light for BASF to
buy a group of agricultural assets that Bayer is selling to gain
approval for its proposed takeover of Monsanto Co. (MON), in a deal
valued at around 7.6 billion euros ($9.11 billion).
The businesses are largely complementary to BASF's existing
portfolio so there are unlikely to be any cost synergies, although
there may be volume synergies, Mr. Engel said on a conference call
following BASF's first-quarter earnings release.
A total of 4,300 employees as well as several production sites
and various research stations will be transferred to BASF as part
of the deal.
Mr. Engel said he expects BASF to take over all businesses
except the vegetable-seeds unit by the middle of the year.
He declined to specify the projected costs for the subsequent
integration, but said they will mostly be booked in the second half
of the year.
For seasonal reasons, the new units are expected to weigh on
BASF's earnings before interest and taxes in the second half of the
year, he said.
Read more about Bayer's takeover of Monsanto at
https://on.wsj.com/2JHcxUW (WSJ paywall) or http://bit.ly/2JH7FiR
(NewsPlus).
Write to Olaf Ridder at olaf.ridder@dowjones.com
(END) Dow Jones Newswires
May 04, 2018 05:10 ET (09:10 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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