The planned Acquisition of US-based seed producer Monsanto, by the German Bayer group moves, apparently, into the next year. The EU Commission wants to take the controversial merger under the microscope.
Because of serious doubts as to the compatibility of the merger of Bayer and Monsanto with the EU merger regulation, the competent Authorities met in Brussels on the brake. As the EU informed the Commission in Brussels, to a decision to 8. January 2018 fall. From the Bayer group to listen to the man “I expected due to the size and scope of the planned Takeover” with further investigation. The Leverkusen pharmaceutical and chemical company wants to complete the Takeover until the end of this year and is in keeping with that goal, in spite of the comprehensive examination.
EU competition Commissioner Margrethe Vestager stated that their authority was concerned, “that the merger might affect competition in the three areas of pesticides, seed and agronomic characteristics”. In the case of agronomic traits are characteristics of plants, such as size or resistance to certain diseases or pesticides, which can be developed in laboratories. Here, Monsanto has a worldwide dominant position.
“Seeds and pesticides for farmers, and ultimately for the consumer is crucial,” said Vestager, the decision. The Commission currently has concerns that the proposed Acquisition could reduce competition in various markets, “which would lead to higher prices, lower quality, less choice and less Innovation”. The Commission must ensure “in these markets, effective competition”.
EU demands more concessions from Bayer and Monsanto
To address these concerns, had Bayer and Monsanto submitted Undertakings, the Commission informed. This had not been sufficient to dispel the “serious doubts as to the compatibility of the merger with the EU merger regulation”. Bayer said to be of the advantages of the proposed merger for the farmers and customers. The group will support the EU Commission in the investigation, as previously, closely and constructively.
EU Commissioner Margrethe Vestager has serious doubts as to the compatibility of the merger with the EU merger regulation
The proposed Acquisition has a circumference of approximately 56 billion Euro. The merger with Monsanto would make Bayer the world’s market leader in the field of agricultural chemistry. Bayer had applied for at the end of June, the EU competition authority, the approval of the proposed merger. The EU Commission’s antitrust watchdog will have to approve the Acquisition of Monsanto by Bayer.
In the United States, the official procedure for Antitrust clearance already. The South African antitrust authority had made Bayer is already selling a portion of its seed and crop protection business. The “liberty link”technology and the affects associated with plant protection products-business with the brand “Liberty”. The Aspirin-inventors agreed to the already. This product family is considered to be an Alternative to the under the brand name “Roundup Ready” displaced herbicide glyphosate by Monsanto.
WWF welcomes EU announcement
The environmental organization WWF welcomed the announcement by the EU Commission for a careful examination. “It is good that Bayer seed in the U.S. and herbicide specialist, Monsanto is not allowed to swallow easily,” said Jörg-Andreas Krüger from the WWF Germany”. This is not to voice “cautious optimism that the EU is waving in the current year, a third elephant wedding in the Agricultural sector”.
The sector for agro chemistry through a strong consolidation is currently running: ChemChina swallowed in may, the Swiss chemical company Syngenta, in June, the U.S. gave authorities the green light for the merger of the two US chemical giant Dow Chemical and DuPont. Environment and Development groups warn that the mergers would lead to a strong monopolization: Only three companies would control 70 percent of the global pesticide market, and more than 60 percent of the commercial seed.
The new company would be the world’s biggest suppliers in agricultural chemistry. With the volume of 66 billion US-dollars of the Bayer-Coup would also be the largest acquisition of a German company abroad. Monsanto is a document known mainly as a manufacturer of Weed with the controversial active ingredient glyphosate.
tko/ (afp, rtr, dpa)