Bayer AG has received the US antitrust clearance for the acquisition of Monsanto Co. in the amount of 66 billion US dollars. This marks the last major regulatory hurdle in nearly two years to found the world's largest seed and agrochemical provider.
Companies have reached an agreement with the Department of Justice to address the government's concerns that the merger, in its original structure, would harm competition that benefits consumers and farmers, the US said Tuesday. The agreement requires the largest sale of assets in a US merger control process, the government said
"America's farm system is vital to our economy, our nutrition system and our way of life," said Makan Delrahim, the department's cartel department chief. "American farmers and consumers rely on direct competition between Bayer and Monsanto."
For Bayer, the acquisition of Monsanto is the last step in a corporate transformation, as the 1
The agreement was reached after the Ministry of Justice's antitrust authorities urged for major divestments to remedy the competition problems caused by the combination of the two companies. The companies have received antitrust approval from most jurisdictions around the world. Bayer is confident that the transaction will be completed by June 14.
Bayer agreed in October in October to sell part of its seed and chemicals business to BASF SE for 5.9 billion euros. The agreement included the herbicide brand Liberty, cotton and soybean seeds, as well as seed properties and breeding capabilities. In April, Bayer (Leverkusen, Germany) said that it sold more of its agricultural business to BASF for as much as € 1.7 billion to satisfy regulators. This agreement included Bayer's vegetable seed business, other herbicides, wheat hybrids research and Bayer's digital agriculture business. These companies had a turnover of 2.2 billion euros last year.
Last year, US and EU regulators approved two other major deals in the industry, the merger of Dow Chemical Co. with DuPont Co. and China National Chemical Corp. Acquisition of Syngenta AG. With sales of approximately $ 48 billion from the Combined Seeds and Chemicals business, Bayer and Monsanto will outperform those of DowDuPont Inc. and China National.