EU probe into $66bn Monsanto takeover

THE EUROPEAN Commission has started an in-depth investigation of Bayer’s planned $66bn takeover of US seeds group Monsanto, saying it was worried about competition in pesticide and seeds markets.

The merger would create the world’s largest integrated pesticides and seeds company, the commission said, adding this limited the amount of competitors selling herbicides and vegetable seeds in Europe.

“The commission has preliminary concerns that the proposed acquisition could reduce competition in a number of different markets resulting in higher prices, lower quality, less choice and less innovation,” the European Commission said.

Germany’s Bayer said it still aimed to have the transaction approved by the end of the year.

“Bayer looks forward to continuing to work constructively with the commission with a view to obtaining the commission’s approval,” the company said.

Bayer had previously offered commitments aimed at easing the EU’s antitrust concerns over the deal with Monsanto, but the company declined to say what was proposed. If approved, the deal would be the third large tieup in the agrochemicals sector.

The proposed tie-up has also hit a raw nerve with some environmental activists who fear such a combination would hurt farmers and consumers.