BASF expects its research agreements with Monsanto will remain if company is acquired

Date:06-09-2016

Germany's BASF SE (BAS.XE) doesn't expect that its research cooperation with Monsanto Co. (MON) on crop technology would be compromised if the U.S. company were taken over by Bayer AG (BAYN.XE).

"We expect that all contracts would be honoured even if there were a new owner," BASF board member Martin Brudermueller said Wednesday.

BASF's cooperation with Monsanto is clearly defined and "our model shouldn't be affected by [a takeover]," he added.

BASF isn't concerned that its crop protection business would be weakened by a Bayer/Monsanto tie-up, Mr. Brudermueller said, noting the unit's innovations and full pipeline. "We're not going to run off with our tail between our legs because of what's happening around us."

Bayer last month made an all-cash offer to acquire Monsanto Co. for $62 billion, which Monsanto rejected as too low. The bid for Monsanto comes on the heels of a consolidation in the seed sector, including ChemChina's bid for Syngenta AG (SYT).