EC updates on Bayer divestments regarding Monsanto merger

The European Commission has conditionally approved under the EU Merger Regulation the acquisition of parts of Bayer's (BAYN: DE) Crop Science business by fellow Germany-based BASF (BAS: DE), which is the world’s largest chemical company.

This transaction is related to the $66 billion Bayer takeover of USA-based Monsanto (NYSE: MON), agreed between the companies in September 2016, and previously announced merger divestment commitments. The merger will create the world's largest integrated pesticides and seeds company.

Bayer has already committed to divest an extensive remedy package worth well over 6 billion euros ($7.26 billion to address the competition concerns on overlaps between Bayer and Monsanto in seeds, pesticides and digital agriculture. The Commission concluded that this divestment package would enable a suitable buyer to sustainably replace Bayer's competitive effect in these markets and continue to innovate, for the benefit of European farmers and consumers.