Bayer to sell assets to win deal: sources

Bayer Chief Executive Werner Baumann has begun to market US assets owned by the German conglomerate in order to win clearance for its $66 billion merger with Monsanto, The Post has learned.

The assets, which are expected to in- clude a vegetable-seeds business and a software unit that helps farmers determine soil conditions for crops, are said to represent more than the $1.6 billion in sales as required under the pact when including the previously announced sale to BASF, sources said.

The auctions signal that Bayer believes it has adequate direction from the European Commission and the US on what it must do to win approval for the Monsanto deal, valued at $128 per share, sources said.

“I’m pretty confident there will be divests and the merger will get through,” a Washington, DC, source close to the situation said.

Monsanto shares on Wednesday, meanwhile, closed at $118, indicating investors believe there is about a 40 percent chance of the deal getting done, according to a trader.

Baumann met several times last month with groups of investors to explain how he was resolving the European Commission’s concerns about the merger, sources at the meetings said. Baumann also said he expects the merger to close in the first quarter, according to the sources.

Justice Department staff is expected to recommend whether to approve the Bayer-Monsanto merger by the end of the month, sources said. The Europeans and the US are said to be coordinating efforts.

“We remain confident in our ability to obtain all necessary regulatory approvals,” Bayer said.