BASF Ups Its Stake In Plant Biotechnology With Svalof Weibull Investment
BASF AG (Ludwigshafen, Germnany) has bought a 40% interest in the Swedish plant breeding company Svalof Weibull AB (SW, Svalov, Sweden). At the same time, the two companies will combine all their research operations in the field of plant biotechnology in a joint venture under the name of BASF Plant Science. The two companies have agreed not to disclose the acquisition price. The acquisition still requires the approval of the antritrust authorities.
SW, which achieved Group sales equivalent to DM 257 million in 1997 with 909 employees and is thus one of the major seed companies in Europe, was established in 1992 through the merger of the two seed companies, Svalof and Weibull, which were founded more than hundred years ago. The company has a broad base of breeding lines and holds a leading position in the world with its spring oilseed rape varieties. Since the eighties, SW has been increasingly gearing itself internationally. In addition to four Swedish subsidiaries, SW has subsidiary companies outside Sweden with the emphasis on Canada and North and Central Europe. In Germany and Great Britain, SW operates under the name Semundo.
"This participation will take us a decisive step forward in the consistent and rapid realization of our plant biotechnology strategy. It forms the basis for intensive cooperation in the development of biotechnologically improved plant varieties," says Dr. Friedrich Vogel, head of BASF's Crop Protection Div.
In a further step, BASF seeks to establish a technology platform for partnership research and development with the name BASF Plant Science. BASF and SW plan to pool all their research operations in the field of plant biotechnology in this company, which will probably have its headquarters in Ludwigshafen. BASF's holding in BASF Plant Science will be 85% and SW's 15%. The company will have an annual research budget of about DM 100 million. Vogel sees further possibilities of expansion: "We can imagine other partners being interested in a participation in this joint research platform."
In August 1998, BASF announced its move into plant biotechnology and the founding of two research companies, SunGene in Gatersleben and Metanomics in Berlin. Last December, scientific collaboration was agreed between BASF, Freiburg University and Private Lecturer Dr. Ralf Reski, who works there.
Building on its broad agricultural competence as the producer of fertilizers, crop protection agents and animal nutrition products, BASF is interested in the development of plants with improved cultivation and quality properties. Plants with enhanced agronomic properties are able for example to survive periods of drought and cold. Crops with enriched constituents—amino acids or polyunsaturated fatty acids, for example—can form the basis for healthier food for humans and animals.