Novartis Agribusiness is selling its FLINT fungicide business to Bayer's crop protection subsidiary, for SFr1.33 billion ($760 million).
The sale to the German group includes production facilities in Muttenz, Switzerland, as well as all associated intellectual property rights, product trademarks, registrations and know-how.
The sale was ordered by regulators in order to gain approval for the merger of Novartis Agribusiness with Zeneca Agrochemicals. The two companies will form a new crop protection group, Syngenta.
The value of product inventories is not included in the price Bayer is paying for FLINT.
Novartis touted the sale as a good deal for all parties involved. "In finding a responsible buyer and excellent partner for our successful FLINT products, Novartis Agribusiness has managed to maintain jobs in Switzerland while fulfilling a condition of the merger," said Heinz Imhof, head of Novartis Agribusiness.
Bayer has made a commitment to continue to employ all of the employees at the Muttenz site in Switzerland.
FLINT is a second-generation strobilurin fungicide with a broad spectrum of applications.
swissinfo with agencies