The European Commission approved the acquisition of parts of Bayer’s crop-science business by fellow German chemical major BASF.
Bayer had agreed on April 26 to sell further pieces of its crop-science business to the tune of US$1.7 billion, with BASF having already agreed to acquire a US$5.9 billion remedy package of crop science business in October last year.
“Since BASF does not currently sell seeds or non-selective herbicides and has only recently started to develop a limited offering in digital agriculture, the Commission did not identify competition concerns with most parts of the transaction,” the EU’s executive body said on Monday.
German drug and crop chemical maker Bayer is selling the assets in return for EU approval for its US$62.5 billion acquisition of US peer Monsanto. It received the go-ahead last month.
The 28-country bloc’s executive body added that it is still assessing whether BASF has the ability and incentives to run and develop the acquired businesses in order to replicate Bayer as an active competitor in the market, and whether the agreements between Bayer and BASF are in line with the commitments.
“The decision adopted today does not prejudge the outcome of that separate assessment,” it concluded.
Full Content: Reuters & Europa Press
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