Acquisition of crop protection products by BASF cleared subject to obligations
10.07.2003
The Bundeskartellamt has cleared BASF AG’s acquisition of certain crop protection segments of Bayer Crop Science AG subject to obligations.
According to the Bundeskartellamt’s findings this concentration would have enabled BASF to acquire a paramount market position over its competitors on the market for fungicides for the treatment of wheat leaves. In order to prevent the Bundeskartellamt from prohibiting the concentration BASF has agreed to grant an interested third party an exclusive marketing licence for at least 5 years, which can also be sub-licensed, for certain cereal fungicides.
Through this sale Bayer Crop Science fulfills an obligation imposed in 2001 in respect of the merger of Bayer and Aventis Crop Science which was examined by the European Commission. At the time Bayer had committed itself to sell certain crop protection segments or to license production and/or marketing to third parties in order to avoid a prohibition.