European Commission conditionally approves Bayer’s proposed acquisition of Monsanto
donderdag 22 maart 2018
The European Union has agreed with the plans from Bayer to acquire US company Monsanto but has stipulated that the new company will have to divest shares worth 7 billion euro.
Neither management of Bayer nor Monsanto will lose much sleep over this condition as the companies themselves suggested this move to avoid the new company would gain a monopoly.
‘Receipt of the European Commission’s approval is a major success and a significant milestone,’ said Bayer CEO Werner Baumann. ‘Together with Monsanto, we want to help farmers across the world grow more nutritious food in a more sustainable way that benefits both consumers and the environment.’ Bayer has now received approvals for the transaction from substantially more than half of the some 30 regulatory authorities, including those in Brazil and China.
The EU conditions cover in particular the divestment of certain Bayer businesses including certain glyphosate-bases herbicides in Europe.
In addition, Monsanto’s global business with the nematicide NemaStrike must be divested. The conditions also stipulate the transfer of three Bayer research projects in the area of non-selective herbicides and the granting of a license to Bayer’s digital farming portfolio. BASF is the intended purchaser of these assets.
The transaction remains subject to customary closing conditions, including receipt of required regulatory approvals. Bayer and Monsanto are working closely with the authorities – including the Department of Justice in the United States – with the goal of closing the transaction in the second quarter of 2018.
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