Following rumours last month, Bayer has confirmed that it plans to sell of vegetable breeding division Nunhems in order to gain regulatory approval for its ongoing take-over bid for Monsanto.
The announcement comes as Bayer tries to reassure European regulators who have concerns about competition in key areas including seeds, traits and crop protection. Last year Bayer sold €5.9 billion of crop science assets to BASF.
“We have now also committed to divest our entire vegetable seed business. Certain additional business activities of Bayer and Monsanto may also be sold or out-licensed,” Management Board Chairman Werner Baumann said at a Financial News Conference in Leverkusen on 28 February. His comments have been interpreted by some that parts of Monstanto’s De Ruiter and Seminis brands could also be affected, but with Bayer and De Ruiter both being particularly active in tomato breeding, the divestment of Nunhems may satisfy regulators.
Photo Credit: Nunhems