Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
AP Photo/Markus Schreiber
Bayer has agreed to sell its seeds and herbicides business to BASF for approximately $7 billion in cash.
Why it matters: This represents a major step toward Bayer receiving regulatory approval for its $66 billion purchase of Monsanto, as Bayer's LibertyLink is a major rival to Monsanto's Roundup products. The sale price also is a bit higher than some had expected, meaning that Bayer may be able to decrease the size of a planned share sale to help finance its Monsanto buy.
Other side: For BASF, this deal a course reversal on seeds and an announcement that it will be in the market for future sector acquisitions.
Dollar details: The involved Bayer businesses had around €1.3 billion of 2016 sales and €385 million in 2016 EBITDA.
Next: Bayer still faces major investigations into the Monsanto deal, by regulators in the U.S., European Union and Brazil. The sale to BASF is contingent on the Monsanto merger closing, which is expected to occur in early 2018.