Deals
BASF, Bayer Agrochemicals Gloom Adds Urgency to Push for Deals
- Rival German chemical makers lower outlooks for crop products
- Difficult markets could be ‘trigger’ for tie-ups, analyst says
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BASF SE and Bayer AG cut the outlook for their agrochemicals businesses, adding to the urgency for global consolidation that’s swept the industry in recent months.
Both German companies reported earnings Wednesday that were weighed down by lower demand for the herbicides and pesticides made by their crop sciences divisions as a global slump in commodities prices hurts farmers’ incomes. BASF and Bayer said profit for their operations in the sector will likely be weaker than previous forecasts.