Bayer admits interest in deals to bolster crop science division

Date:10-29-2015

Bayer's Chief Executive Marijin Dekkers announced that his company is interested in acquisitions and partnerships at the crop science sector. He revealed these intentions in an interview to British newspaper Financial Times and affirmed that Bayer became interested in new acquisitions after the failure of Monsanto's US$ 46 billion bid for Syngenta two months ago.

"We are very committed to our crop science business and have no intention of selling it. 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,” explained Dekkers.

Speculators say that Bayer is motivated to do an offer to buy Syngenta's seed unit, the FT report says. The division was put on sale in September from US$ 2 to US$ 3 billion, but Dekkers did not specifiy Bayer's intentions. He only stressed out that the German company is pen to deeper collaboration with rivals to cross-license seeds and herbicides.

"We are already very networked but you can always go to a higher level and there are constant discussions,” he said.

Dekkers told the Financial Times that Bayer's capacity for acquisition was pushed by the raising of €1.5 billion with the sale of its plastics unit, Covestro. The report also revealed a possibility of purchases in animal health and consumer healthcare, but Dekkers highlighted: “It’s not as if I wake up in the morning and say where’s the next deal? Much more important is organic growth.”