Business News
Lantmännen, Svalöf Weibull and BASF agree on share exchange
Monday 27. October 2008 - Lantmännen gains full ownership of Svalöf Weibull; BASF gains full ownership of BASF Plant Science New ownership structures enable companies to focus on their individual strategies Partners committed to further close cooperation
Lantmännen, owned by Swedish farmers, has become the sole owner of Svalöf Weibull after acquiring the 40 percent share in Svalöf Weibull previously held by BASF Plant Science. At the same time, BASF has gained full ownership of BASF Plant Science by acquiring the 15 percent share in BASF Plant Science previously held by Svalöf Weibull. The respective agreements were signed on October 22, 2008. Financial details were not disclosed. The resulting simplification will give the companies greater flexibility in responding to their respective strategic demands.
“Plant breeding is one of Lantmännens core operations. We want to focus fully on Svalöf Weibull – better known to our customers as SW Seed. With BASF Plant Science as our partner we have restructured SW Seeds operations in the past years and have made the company even stronger in both the Nordic and the growing Central European markets,” commented Lantmännens President and CEO Per Strömberg.
“In future, both companies will concentrate on their core competences. For BASF Plant Science this means the development of plant biotech products for the global market,” said Hans Kast, President and CEO of BASF Plant Science. “Full ownership has advantages and can speed up decision making. On the other hand, our extensive experience shows that joint ownership is not a prerequisite for working together successfully.”
“Markets and strategic focus have changed since BASF and Svalöf Weibull started their cooperation 10 years ago,” explained Monika Lekander, CEO of Svalöf Weibull. “It is therefore logical for the partners to now end their joint ventures. An independent Svalöf Weibull can look for new development opportunities and cooperation partners, whilst we can count on the continuation of our excellent cooperation with BASF Plant Science for certain projects.” Svalöf Weibull will continue to provide field trial services for BASF Plant Science in Sweden and will allow BASF to access selected commercial seed varieties for research and commercialization purposes.