BASF closing in on acquisition of Bayer crop-science unit

BERLIN, May 2 (Xinhua) -- The German chemical manufacturer BASF is close to completing the acquisition of Bayer's crop science unit, the company's newly-designated chief executive officer (CEO) Martin Brudermueller told press on Tuesday.

The new CEO expressed confidence that BASF had secured a "very smart deal" with domestic rival Bayer to take over its crop science unit, mainly comprising seeds and pest management products. Competition authorities in the European Union (EU) Commission have recently granted their formal approval to the transaction, removing one significant obstacle to the conclusion of Bayer's widely-publicized merger with U.S. agrochemical company Monsanto.

While noting that the transaction was not finalized entirely, Brudermueller said that BASF and Bayer were "nearing the end of the road" on the sale. The 56-year-old will be officially inaugurated as the successor to acting CEO Kurt Bock on May 4th.

Brudermueller highlighted that the long-term objective underlying the Ludwigshafen-based firm's acquisition of the crop science unit was to make cotton, rape, wheat and soy resistant against pests. "These are the key crops for pest management at the moment", he said.

Additionally, the designated CEO identified the production of materials for batteries used in the automotive industry as increasingly constituting another focal point in the "evolutionary" development of BASF. The fast-growing business already accounts for 15 percent of the company's total revenue, making it the single largest division at BASF.

"The success of electric mobility is in large parts a story about chemistry", Brudermueller explained. Chemical products were becoming more valuable to the automotive industry in general, with new types of varnish which offered to reduce vehicle weight, and thus enhance fuel efficiency, only being one related field where BASF was currently playing a pioneering role.

Although Bruedermeller was upbeat that continued innovation would ensure the future success of his company, he also said that he was "hugely concerned" about the ongoing trade conflict unleashed by the protectionist policies of U.S. president Donald Trump. He argued that even if BASF was itself well poised to persist in difficult market conditions, a spiral of "verbal escalation" posed a real threat to global growth.

BASF is the world's largest chemicals manufacturer by revenue, recording global sales worth 64.5 billion euros (77.4 billion U.S. dollars) in 2017. The Ludwigshafen-based firm employs a total of 115,000 staff across the world. Enditem