BAYRY - Bayer inks deal with Chevron for majority stake in oilseed producer CoverCress

Bayer ( OTCPK:BAYRY ) ( OTCPK:BAYZF ) signed an agreement with Chevron ( NYSE: CVX ) to increase its ownership to a majority stake of 65% in winter oilseed producer CoverCress (CCI).

The German conglomerate said the remaining 35% of CCI will continue to be held by Bunge and Chevron U.S.A., a unit of Chevron.

CCI has been a portfolio company of Leaps by Bayer, the investment arm of Bayer for the past seven years.

CCI, which will continue to operate as an independent entity, developed CoverCress as a crop whose grain is a lower carbon, low-input source for fuel and feed, Bayer said in an Aug. 1 press release.

Bayer added that oil extracted from CoverCress grain is aimed at achieving a lower carbon intensity score and can be made into renewable diesel with Bunge's expertise in oilseed processing and Chevron's proficiency in fuels manufacturing.

"CoverCress is exciting because it has the potential to become an important source for biofuel production as a new harvested rotational crop, while giving growers an innovative option to continue effective stewardship of their land and improve soil quality by acting as a cover crop," said Rodrigo Santos, member of board of management of Bayer and president of Crop Science division.

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