Monsanto acquisition delayed further

German chemical giant Bayer hoped to acquire Monsanto by the end of this year. However, it now looks like this will happen in early 2018 at the earliest. The company announced this on Tuesday, September 19. The January 8 deadline, imposed by the European Commission, may be extended.

Bayer has asked the European Commission to extend the deadline for the investigations from January 8 to January 22. The committee announces that it will make a decision on this shortly. According to Liam Condon, head of Bayer Crop Science, the $66 billion deal is not expected to close until 2018. Condon says he is convinced that the takeover can go ahead, despite all the objections raised by the European Commission.

Company no further stripped
At the end of August it was announced that the competition authority of the European Commission is starting an investigation into the takeover. It is feared that competition will disappear with regard to plant protection products and seeds.

In its own words, Bayer cannot sell industries that allay the EC's concerns. The company has requested approval from 30 authorities for the acquisition. A third has now given the green light.

In addition to news about the proposed acquisition, Bayer also announced expectations for its Crop Science division on September 19. For the remainder of this year, it expects a highly volatile global market and modest growth in 2018.

Outlook Brazil
This year, Bayer has been particularly affected by lower sales in Brazil. Fewer plant protection products were sold there, it announced in June. A small growth margin is also expected in this country for 2018. For 2017, the targets have been revised downwards due to the poor Brazilian sales.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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