EU regulators are looking “very carefully” at competition issues in Bayer’s proposed purchase of Monsanto to make sure farmers will have a choice of products at affordable prices, said Bloomberg. The wire service said Bayer, based in Germany, was to receive a so-called statement of objections as soon as this week, which could lead the companies to offer a package of concessions.
Basing its story on “two people familiar with the probe,” Bloomberg said the two seed and ag-chemical companies are in regular contact with the EU to hash out the objections. The proposal would complete a wave of consolidation that is transforming the sector from a “big six” to a “bigger three.” DuPont sold most of its global research and development operations in order to gain EU approval for its merger with Dow, noted Bloomberg.
Bayer’s chief executive said last week that research and development concessions may be on the table in the transaction with Monsanto, said Bloomberg. “Bayer is already selling a seed-and-agrochemical business to BASF SE for $7 billion and is preparing a package of additional vegetable-seed product lines to win over regulators, people said last month.”