Brazilian Antitrust Company Approves Bayer-Monsanto Tie-up

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BRASILIA (P3P) – Brazilian antitrust company Cade on Wednesday permitted Bayer AG’s (BAYGn.DE) proposed takeover of U.S. seeds firm Monsanto Co (MON.N) with out requiring additional asset gross sales past a worldwide proposal introduced final October.

Cade’s commissioners voted Four-2 in favor of the tie-up beneath an settlement, negotiated between the businesses and international antitrust businesses, that included the sale of a number of of Bayer’s property to BASF SE (BASFn.DE).

Approval of the transaction in Brazil, a powerhouse producer of grains and different agricultural commodities, clears an important hurdle for the deal, which the businesses initially aimed to have permitted by the tip of 2017.

The transaction, valued at $66 billion when introduced in September 2016, would create the world’s largest seeds and pesticides firm. The worth of the deal has since been revised to $63.5 billion as Monsanto diminished its debt load. [IFR3fvQLn]

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The businesses are ready for approval of the deal in jurisdictions together with the European Union and the US, the place last rulings are nonetheless pending.

In Brazil, the transaction confronted fierce opposition from soy and cotton growers in addition to seed producers who thought it could give the combining firms extreme market energy.

Rachel Mendonça, an legal professional who represented three associations towards the deal, highlighted Cade’s imposition of limits on licensing and gross sales practices by the brand new firm, however conceded she had misplaced the argument for extra asset gross sales in Brazil.

Earlier this week, Bayer mentioned in an announcement it had proposed options to allay antitrust considerations within the EU. Bayer had agreed to promote seed and herbicide companies to BASF for five.9 billion euros ($7.24 billion). It emerged this week the supply would additionally contain divestments of vegetable seeds enterprise in some EU international locations, a supply aware of the matter mentioned.

Most of Cade’s board mentioned these measures can be sufficient to handle antitrust considerations laid out by its technical employees in October, when it really helpful the deal be blocked or permitted with situations.

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