Bayer CropScience AG ー a new company, but nevertheless with extensive experience in the field of crop protection. Bayer CropScience is a merger of the relevant business groups of Bayer AG with the crop protection business of Aventis. The result is a company that offers probably the most comprehensive crop protection portfolio in the world. It holds top market positions in all its core business areas and has now created two new divisions: BioScience and Environmental Science. A clear signal for expanded activities, greater responsibilities ー but in particular for an integrated approach to and better understanding of the tasks of Bayer CropScience. True competence means more than concentrating on the successes of the present; it means taking on the challenges of the future.
Bayer CropScience has divided its
activities into three independent divisions. This structure has
been chosen for operational and business reasons. And it ensures
a clear structure in the organization and in relation to
customers.
Crop Protection
Solutions for the protection of crops. This encompasses
protection from pests, weeds and diseases as well as prophylactic
treatment of seeds.
Environmental Science
This business group serves a mosaic of different
customers. It is divided into the non-agricultural professional
markets and the consumer business.
BioScience
Expertise leading to new solutions through the advances in
biotechnology, seed breeding and the development of hybrids. All
this with the primary goal of improving the quality of crops ー
and thus increasing yields.
Closing of Aventis CropScience
acquisition Bayer
CropScience ready for launch
Among the top companies
in the world market / Forecasted growth above the industry
average
The new Bayer CropScience subgroup, formed through the merger of
Bayer's Crop Protection Business Group with Aventis CropScience
SA, will begin operating on June 4, 2002. The industry's new
number two company is thus being given the green light following
a thorough examination by the antitrust authorities. The European
Commission approved the acquisition in April, and the United
States Federal Trade Commission (FTC) gave the go-ahead on May
30. Closing of the EUR 7.25 billion deal on June 3 marks the
biggest acquisition in Bayer's history.
"We are pleased to have accomplished this major acquisition
in just half a year. Bayer CropScience will be one of the pillars
of the reorganized Bayer Group," commented Bayer Management
Board Chairman Werner Wenning. "We will be able to
capitalize on our strengths as a leading company in crop
protection, the seed business and biotechnology, as well as in
non-agricultural pest control. We are counting on the
considerable innovative power of the new company, which we intend
to safeguard through suitably high research and development
budgets."
Despite the conditions imposed by the antitrust authorities,
which will mean divesting or outlicensing a sales volume of
between EUR 650 million and EUR 700 million, Bayer CropScience is
one of the industry's top companies, with approximately 22,000
employees and sales of roughly EUR 6.5 billion.
Bayer CropScience is divided into five functions, and its
operations are steered via five market regions ー Europe, NAFTA, Cono Sur *, Northeast Asia and International. The
classic crop protection business is complemented by two
autonomous business groups: Environmental Science (which includes
professional pest control) and BioScience, both headquartered in
Lyon, France.
"We want to be more than just the sum of the combined
businesses. That's why we have set ourselves the target of
growing at about 4 percent a year, considerably faster than the
total market. That way we would increase annual sales to more
than EUR 7 billion within the next three to four years,"
explained Dr. Jochen Wulff, Chairman of the Board of Management
of Bayer CropScience. "We have had to reduce our sales
forecast compared to our original plan because we have to meet
the conditions set by the E.U. Commission and the FTC. But we are
holding on to our strategic goal of achieving a 20 percent return
on sales by 2006," Wulff added.
An advantage the new company has in the competitive environment
is its balanced range of high-performance products covering the
entire market spectrum: Bayer CropScience holds excellent
positions both in the classic agriculture business ー including insecticides (number 1),
herbicides (number 3) and fungicides (number 2) ー and in terms of regional presence. Then
there are its two additional business groups: Environmental
Science, which combines professional pest control with the home
and garden business, and BioScience, which comprises the seed and
biotechnology businesses.
"With our broad regional base and extensive technical
expertise, we can capitalize on all market opportunities and be a
partner of choice for customers. We now have the best
perspectives for success in an industry that is already at an
advanced stage of consolidation," Wulff pointed out. With
subsidiaries or representations in 122 countries, Bayer
CropScience operates close to the trade and to end users. This is
a key competitive factor, since close contact between
manufacturers and customers brings maximum benefit. That's why
Bayer CropScience has chosen the launch slogan "Your Partner
for Growth."
In the run-up to today's closing ー the legal transfer of Aventis CropScience
SA to Bayer ー 23 mixed
teams of experts and numerous subteams have developed the
structures for the new company. The first decisions regarding
corporate locations have been made, and the managerial staff have
been selected with the aid of external consultants. One-time
integration charges are expected to total EUR 500 million, while
Bayer is aiming for an annual saving through synergies of about
the same amount, which it is hoped will be fully realized by
2005.
The top management of Bayer CropScience will introduce itself to
the employees in a number of welcoming events taking place around
the world - from the company's Monheim, Germany base through the
European headquarters in Lyon, France and the site in Frankfurt,
Germany to the United States, Japan and Brazil. At these
meetings, the management team consisting of Management Board
Chairman Dr. Jochen Wulff and Board members Dr. Bernward Garthoff
(Technology), Dr. Esmail Zirakparvar (Business Operations) and
Willy Scherf (Administration) will also answer questions
concerning the ongoing integration process that will continue to
be a focus of the new company. Also a high priority are efficient
communication with, and continuing support for, the new company's
customers, for in the future Bayer CropScience will offer a
considerably broader product range and enhanced problem solutions
thanks to its increased wealth of expertise.
*Cono Sur=南米南部（直訳すると South cone）
メルコスール（MERCOSUR; Mercado Comun del Cono Sur
南米南部共同市場）：ブラジル、アルゼンチン、ウルグアイ、パラグアイの４ヶ国からなる、財、サービス、労働の域内自由市場の創設を目指したもの。1991年に調印されたアスンシオン条約で創設を決め、1995年1月1日にGDP総計7,000億ドル、人口2億人の共同市場が発足した。
Bayer CropScience Intends to Overtake Syngenta
Bayer CropScience says it intends to overtake Syngenta to become the leading agchems producer by 2006. "We are the market leader in conventional crop protection, which includes fungicides, herbicides, insecticides, and seed treatment, but we want to be number one in the overall agchems segment," says Bayer CropScience CEO Jochen Wulff. That will be achieved through the company's product pipeline, as well as cost cutting and bolt-on acquisitions, Wulff says. It is not interested in further large acquisitions following last year's purchase of Aventis CropScience, however, he says. Bayer CropScience has agchem sales of E5 billion ($5.5 billion), giving it a 20% market share. It to launch 14 active ingredients by 2005, says board member Esmail Zirakparvar. Sales from those compounds are expected to exceed E800 million/year by 2006, he says. The company also aims to raise its earnings before interest, taxes, depreciation and amortization margin from 13.1%, to of 29% by 2006, Wulff says.