Brazil: CADE questions Bayer-Monsanto merger; suggests compromises

Brazil’s antitrust regulator CADE has declared that the acquisition of Monsanto Co. by German firm Bayer AG could negatively affect competition in the country, requesting some changes and compromises before the transaction can be approved. The merger, announced in September 2016, is expected to completely transform the global landscape of pesticides and seed production.

CADE has estimated that expected gains in efficiencies as a result of the merger will be insufficient to mitigate its competition concerns and recommended what it termed “structural solutions” as a condition for final approval of the agreement.

CADE has 330 days from the start of the review to issue a final decision. An announcement is expected as early as December this year. The solutions would contemplate the creation or strengthening of another player in the sector in order to compete in the soybean and cotton seed markets, as well as in biotechnological research and development.

In response to this declaration, Bayer told Reuters that the opinion expressed by CADE’s board is non-binding and does not mean the operation will be jeopardized.

Full Content: Reuters

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