Published on : Apr 12, 2018
After the German multinational, pharmaceutical and life sciences giant Bayer AG recently secured antitrust approval from EU for buying Monsanto Company at $62.5Bn, it has now inched closer to winning the United States Department of Justice, according to the sources familiar with the matter. To this end, it has agreed to sell digital farming business to its rival BASF SE. The European Commissioner for Competition had given a green light to the mega merger deal only after Bayer agreed to sell a vast portion of its assets to ensure a fair competition. The German chemical player disclosed on April 11, 2018 that it though it had previously committed to grant license to competitors. However, according to the recent agreement reached upon with the European Commissioner, some of the digital farming applications will remain outside the purview of the license. For instance, digital farming offered by Monsanto will remain with Bayer.
Final Details of Mega-merger Deal with Monsanto being Worked Out
Riding on the wave of consolidation in the agrochemical sector, several big players in the seeds and pesticide market are leveraging on the potential of digital farming solutions and reap huge gains. The solutions consisting of smart software, sensors, and precision agriculture technologies, are still in developmental phase.
Approval of the deal to acquire American multinational agrochemical corporation Monsanto is almost over and the final details are being worked out. As reported in the Wall Street Journal, an outline of the deal with the U.S. Justice Department (DoJ) had already been finalized. The DoJ has expressed concerns about the unfair trade practices that may emanate from the proposed merger of the German chemical company with the U.S. seed giant.
BASF Potential Buyer of Assets Sold by Bayer
The Leverkusen-based company revealed that BASF is the buyer of almost all its assets. However, the DoJ is still assessing whether the German chemical giant will be a suitable buyer. Of note, world over, two-thirds of the jurisdictions have already given conditional go-ahead to the mega-merger deal. Bayer intends to finalize the deal in the Q2 this year.