Bayer’s
deal to purchase Monsanto has gained approval from the European Union, provided
it sells more than $9.5 billion worth of divisions and companies.
It is
still awaiting a ruling from the United States.
The $73.5
billion deal was announced Sept. 6.
There are
reports that it will sell its seeds,
pesticides and digital agriculture technology to BASF SE..
But Bloomberg News says Bayer
and BASF “need to provide further evidence” of BASF’s ability and incentives to
build the business into an important competitor in order for BASF to get
approval to buy the more than 6 billion-euro ($9.5 billion Cdn) package, the EU
said.
Without
the remedies, EU Antitrust Commissioner Margrethe Vestager said the buyout would have significantly
reduced competition in the market and hindered innovation.
The deal
would create the world's largest pesticides and seeds company and therefore
needed a large number of remedies to be approved, she said.
"We
have made sure that the number of global players actively competing in these
markets stays the same," said Vestager.
"That
is important because we need competition to ensure farmers have a choice of
different seed varieties and pesticides at affordable prices."
Bayer CEO
Werner Baumann said that "the European Commission's approval is a major
success and a significant milestone."
He said they
hope to close the deal during the second quarter of 2018.
