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U.S. Justice Dept. to OK Bayer-Monsanto Merger
April 10, 2018
2 Min Read
The Bayer cross logo. Image courtesy of Bayer AG
Regulatory approval from authorities in Russia and India appear to be the final hurdles in a planned merger between German firm Bayer AG and Creve Coeur, MO-based Monsanto after reports emerged Monday that the U.S. Justice Department plans approve to the proposed tie-up.
Unnamed sources told The Wall Street Journal that Bayer, the leader of the regulatory approvals process in the merger, had reached an agreement with the Justice Department over the past few days. Both firms agreed to shed some of their assets as part of securing a sign off from U.S. antitrust regulators, the newspaper reported.
Bayer and Monsanto are in the process of finalizing the terms of the approval conditions and expect an official approval this week, another unnamed source said in a report by Bloomberg.
The American seed provider said recently that it expects Bayer will gain all required antitrust approvals this year.
“The number of anti-trust approvals continues to increase, most notably from the European Commission, China, and Brazil, and, as part of this process, Bayer has announced several planned divestitures,” Monsanto said in an April 5 press release announcing its quarterly financial results. “With these actions, Monsanto continues to be confident in the companies’ collective ability to secure the required approvals within the second calendar quarter of 2018 and in the time contemplated by the agreement.”
Powder & Bulk Solids reported in March that the European Commission gave its antitrust approval to the deal. European officials stipulated that Bayer is required to divest its interest in some of its businesses, including crop seeds, its R&D platform for hybrid wheat, and its global vegetable seeds unit.
Company representatives and Justice Department officials would not comment on the matter to the Wall Street Journal.
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