Wall Street Journal Reports Bayer’s Acquisition of Monsanto Approved by The Justice Department
According to those familiar with the matter, the Justice Department has allowed Bayer AG’s $60 billion acquisition of Monsanto Co. The decision came after the two companies agreed to sell off their additional assets in order to secure government antitrust approval. With this breakthrough, the Justice Department’s concerns about the deal were addressed and the merger can continue to move forward.
In September of 2016, the two major agriculture companies announced their deal to create a new agricultural powerhouse. Bayer AG is a German company that plays a leading role in the pesticide industry, and Monsanto, headquartered in St. Louis, MO, is a leader in crop genetics
Although conditionally approved by the European Union last month, the U.S. Justice Department voiced major concerns on how the merger could have a different competitive effect on both farmers and consumers, especially in the genetically modified seed market.
Bayer’s purchase of Monsanto is the third of recent agriculture megadeals. DowChemical Co. and DuPont Co merged last year and Syngenta AG completed its deal with China National Chemical Corp.
These megadeals have increased farmers’ worries about their effects on prices and farm incomes, and have urged antitrust enforcers to block the deals. Farmer’s voice concern that with less global competition, prices on crucial farm supplies will raise and there will be fewer choices for the farmers.
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