BASF divests Phenoxy Business

BASF Aktiengesellschaft, Ludwigshafen, Germany will divest the so-called phenoxy herbicide business (agrochemicals to control weeds, globally known under the trade names U 46® and Duplosan®) to Nufarm Limited, Melbourne, Australia. The sale comprises the six active ingredients 2,4-D, MCPA, Mecoprop-P, Mecoprop, Dichlorprop-P and Dichlorprop with sales of about €40 million in 2002. The transaction includes registrations, trademarks, intellectual property rights, customer lists and inventories.

The purchase price for this business including inventories amounts to €42 million. Both companies expect to close the transaction early 2004.

BASF’s existing business, with combinations of the above mentioned six active ingredients with innovative BASF herbicides, does not form part of the divestiture. BASF will source the phenoxy active ingredients for these mixture products from Nufarm.

“For BASF, this is another step in focusing our Agricultural Products business on higher growth products,” says Hans W. Reiners, President of BASF’s Agricultural Products division. “There are products in our portfolio which, like the phenoxy herbicides, make a better strategic fit with a specialized company, such as Nufarm.”

Phenoxy herbicides were introduced to agriculture about 50 years ago and continue to play an important role in weed control. Currently, they represent about 4% of the global herbicide market.

With sales of €3 billion in 2002, BASF’s Agricultural Products division, is a leading supplier and marketer of fungicides, insecticides and herbicides. Based on its broad experience in R&D, manufacturing, marketing and sales, the vision of BASF’s Agricultural Products division is to be the world’s leading innovator, optimizing agricultural production, improving nutrition, and thus enhancing the quality of life for a growing world population.