Conditions set
Breakthrough reached in Monsanto deal
The German chemical group Bayer is allowed to acquire the chemical and seed group Monsanto. The European Commission (EC) has given permission for this, provided a number of conditions are met.
The condition is that both parties must sell activities, in order to avoid cartel formation. This includes activities related to seeds and plant protection products. Bayer also has to sell several research facilities. The deal creates the world's largest seed and crop protection company. The deal is worth €53 billion.
Sale to BASF
Bayer and Monsanto have proposed to divest more than €6 billion in assets, mainly to German chemical company BASF. This has completely dispelled concerns about competition, reports European Commissioner Margrethe Vestager. The EC is in favor of a sale to BASF. Bayer and Monsanto will not be able to close their deal until the investigation into that sale is complete.
The EC has been investigating the deal since August 2017. earlier was already known that the Limburg seed breeding company Nunhems was put up for sale to make the deal possible. It is now up to the US competition authorities to give the green light for the acquisition.
Anne-Jan Doorn
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.