Bayer ES to retain Chipco product line

Golf Course News, May 2003 by Overbeck, Andrew

MONTVALE, NJ. - Bayer ES has reached an agreement with regulatory officials and BASF AG on the divestiture of its key insecticide active ingredient fipronil. The deal includes back-licenses that allow Bayer ES to continue to market fipronil products, including the Chipco Choice line, to the turf and ornamental markets worldwide. BASF, which bought fipronil, will have rights to the active ingredient in the global professional pest control and agricultural markets.

The divestiture of fipronil and other fungicides was required by the U.S. Federal Trade Commission and European Commission as part of Bayer CropScience's acquisition Aventis CropScience. The planned divestiture was announced in late October and negotiations between Bayer ES and BASF finally wrapped up after the European Commission approved the deal March 24.

Retaining rights to market the Chipco products in the turf and ornamental market gives Bayer ES a solid insecticide lineup.

"It is a very strong product line and it gives us a good strong position in South with fire ant control and mole cricket control," said Jim Fetter, director of marketing for Bayer ES. "We are clearly the leader in terms of insecticides and this helps us maintain our strong leadership position there. These products are new, patented, proprietary products and are rapidly growing because they have been introduced within the last five years. They are on a strong growth curve."

The deal ends months of speculation about how the back-license of fipronil products would be structured.

"There was negotiation going on," Fetter said. "It has been up in the air because it is a complicated deal. You have to work out all the details about which assets go, which plants are included and all that kind of stuff. It has taken time to work out the details."