Aventis to sell agrochem business

16 November 2000

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 Euro661m 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.

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