BASF can expand sales in 300 mi euros

The completion of the purchase of assets from Bayer by Basf, announced this week, can generate immediate increase of sales of 300 million euros in Latin America (the equivalent to R $1.3 billion, with real in R $4.35). The figure would represent about 20% of the company's earnings in the region. The Brazil should account for much of this volume, and is today the second largest German multinational market, behind the United States. "It is very important that Brazil's relevance, since the production site has different needs from the U.S.," says Senior Vice President of the Division of Basf's agricultural Solutions in Latin America, Edward Leduc. Globally, the additional revenue provided for with the acquisition is of 2 billion euros, compared with sales of 5.7 billion euros the company's agricultural Division in 2017. The purchase, made in the context of the merger between Bayer and Monsanto last year was valued at 7.6 billion euros and mainly involves the global business of glufosinate ammonium, including seed varieties, research and improvement. Yesterday, in a teleconference, President of Basf's agricultural solutions, Markus Heldt, has expressed interest in maintenance of brands like Liberty Link, associated with the use of the active ingredient glufosinate ammonium Nunhems, vegetable based in the Netherlands. "We have no intention of changing, but to expand them." The operation puts the German company in fourth place in the global market in seed and crop protection and will have complete structural integration from January 2019. "Hardly any other acquisition would allow us to Basf's entry in the market of seeds with a global structure. Now, we can be in the whole cycle of culture, since the decision of the seed, treatment, defensive, and the harvest. " With the purchase, the multinational incorporates 25 new experimental fields and rely on more than 40 units in Latin America. In Brazil, will be 15 new areas distributed in 10 States. "We doubled the presence in areas of research, which extends the ability to develop new solutions more quickly. Is a large acquisition that strengthens us in various aspects, "says Leduc. The company has invested 1.9 billion euros in research and development in 2017, and 27% in agriculture, the equivalent of EUR 507 million. With the acquisition, the company will add 900 million euros of contribution. Leading German company takes the lead of the cotton seed market in Brazil, but has in soybeans the largest growth perspective. "We are still in a phase of introduction of varieties, with a lower market share, but our interest is to have a more robust offering," says Leduc. As the Executive, the prospect is that new varieties can be launched in 2018 and yet next year. "We are starting the phase of ' findings ', where teams of Bayer and Basf will talk about what's new." Leduc bet in a high demand for inputs in crop 2018/2019. "We realized an intent to use very high technology in order to ensure productivity and the larger area in soybeans and corn." With the impasse regarding the price of freights with resolution expected for the end of the month, he claims that the company already works to ensure the delivery of seeds – that needs to be made by the end of August – discards the increased costs in delivery and also the possibility company to acquire Dade's own fleet.