EU: Vestager OKs $66bn Bayer-Monsanto deal

Bayer cleared one big hurdle for its $66 billion takeover of Monsanto, winning European Union approval for the deal after agreeing to bolster BASF SE by selling it seeds, pesticides and digital agriculture technology, reported Financial Times.

The German company promised to sell some of its herbicide and seeds businesses to rival BASF to alleviate the watchdog’s concerns that the tie up with the giant American agribusiness would cut competition in the EU and lead to higher prices, lower quality, a cut in choice and less product innovation.

Bayer will also license BASF its digital farming portfolio. Margrethe Vestager, EU competition commissioner, said: “We have approved Bayer’s plans to take over Monsanto because the parties’ remedies, worth well over €6 billion, meet our competition concerns in full.

Our decision ensures that there will be effective competition and innovation in seeds, pesticides and digital agriculture markets also after this merger.” BASF agreed to buy Bayer’s non-selective herbicide business and some of its seeds business in October for €5.9bn, and has recently agreed a further purchase of its rival’s vegetable seed business for around €1.5bn. European authorities are considering the competition implications of these sales to BASF.

Full Content: Financial Times

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