Bayer’s $57 billion purchase of Monsanto, the latest in a wave of consolidation among seed and ag-chemical companies, faces an in-depth investigation by EU regulators over concerns the merger would result in higher prices and reduced competition in the seed, pesticide, and plant trait sector, said the Wall Street Journal. In a statement, Bayer said that the union “will be highly beneficial for farmers and consumers” and that it hopes for EU approval of the merger by the end of this year.
The combination of Bayer and Monsanto would create the largest integrated seed and pesticide company in the world, said the European Commission. “Moreover, the transaction would take place in industries that are already globally concentrated, as illustrated by the recent mergers of Dow and Dupont and Syngenta and ChemChina.” On July 31, Bayer and Monsanto submitted “commitments” to the EU to ease its antitrust concerns. “However, the commission considered these commitments insufficient,” said an EU release.
The EU has until Jan. 8 to complete its review “and regulators rarely complete their reviews well in advance of their set deadline,” said the Journal. “That date could also be pushed back if there are any delays or extensions to the review.”
The “big six” of the seed and ag-chemical world seem well on their way to becoming a “big three.” Regulators have already cleared the merger of Dow and DuPont as well as ChemChina’s purchase of Syngenta.