Aventis to sell agrochem business
By FWi staff
LIFE SCIENCES giant Aventis is to sell its agrochemical business so that it can focus on pharmaceuticals, reports the Financial Times.
Analysts say the sell-off would give Aventis more freedom to develop its drug business, which has been hindered by the less profitable agrochemical division.
The margin for Aventis agrochemical sales is 12.3%, compared with 64.6% for the pharmaceutical division.
The agrochemical division reported earnings of 661m in 1999, and the FT speculates that Dow, Du Pont and Bayer could be among possible buyers.
The FT Lex column says the news consigns the life sciences concept to the scrapheap.
It says synergies between healthcare and crop protection proved illusory, as margins in the latter were much lower.
- Novartis to keep vet medicines, FWi, 15 November, 2000
- Syngenta makes dismal debut, FWi, 14 November, 2000
- Aventis to trim agchem list, FWi, 31 March, 2000
- Financial Times 16/11/2000 page 28 and 40