EU Approves Bayer-Monsanto Takeover

German multinational enterprise Bayer AG received approval on Wednesday for its $66 billion Monsanto takeover after sealing the deal with the European Union to boost the BASF SE by selling it seeds, pesticides, and digital agriculture technology.

Bayer also struck a deal with BASF which will allow the latter to buy certain seed and herbicide assets for 5.9 billion euros ($7.2 billion) while also providing a license to its global digital farming data.

The EU stated that Bayer and BASF must first “provide further evidence” of BASF’s ability and incentives to turn the business into an important competitor before the BASF receives the approval to buy the 5.9 billion euro package.

There was no information provided about the buyer for Bayer’s vegetable seed unit. The German pharmaceutical and life sciences company has instead suggested that BASF takes it over.

“We have made sure that the number of global players actively competing in these markets stays the same, “said EU Competition Commissioner Margrethe Vestager. “That is important because we need competition to ensure farmers have a choice of different seed varieties and pesticides at affordable prices.”

Bayer stated that it will be suing the Russian antitrust watchdog after it issued an order for the company to share technology with Russian companies.

The conglomerate also stated that it’s still aiming to complete the deal by the end of the second quarter; adding that it’s working closely with the U.S. Department of Justice.

“Receipt of the European Commission’s approval is a major success and a significant milestone,” said Bayer CEO Werner Baumann in an emailed statement.

The Bayer-Monsanto tie-up will give the conglomerate control of more than a quarter of the world’s seed and pesticides market.

“Our decision ensures that there will be effective competition and innovation in seeds, pesticides and digital agriculture markets also after this merger,” Vestager stated.

“In particular, we have made sure that the number of global players actively competing in these markets stays the same.”

The commission is expected to announce the final decision on the BASF deal by April 16. China has given the Bayer and Monsanto deal a conditional approval, which resulted to the approval of Brazil. The deal is currently being reviewed by the U.S. and Russia antitrust authorities.

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