European Commission to rule on Bayer-Monsanto merger by June 2018

FILES: The headquarters of the Bayer AG in Leverkusen, Germany, Monday, pictured on 06 March 2006. Bayer AG offered 19.5 billion dollars Thursday, 23 March 2006 for rival German drug company Schering AG, eclipsing a bid by Merck KGaA for the birth control pill maker. Schering 'has stated its intention to approve the planned takeover offer and recommend acceptance by the company?s stockholders, Bayer said in a statement. Schering rejected Merck?s 17.8-billion-dollar hostile takeover bidOliver Berg

European Commission to rule on Bayer-Monsanto merger by June 2018


Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

The European Competition Commissioner Margrethe Vestager told CNBC on Tuesday that the final decision on the Bayer-Monsanto will be taken in the first half of 2018.

The provisional date given is April 5, but the “first half” reference could mean a further delay, until June 2018.

The €49bn acquisition ($60bn) would create an enormous one-stop shop for agricultural supplies, ranging from genetically engineered seeds to pesticides. The fear is that the merger would obliterate sectoral competition, raising costs for farmers.

The move has triggered a series of consolidation moves in the sector, including Chem China and Syngenta and DuPont and Dow.

The merger has also been criticised for rallying Bayer’s lobbying clout in support of Monsanto’s weedkiller Roundup. The World Health Organization (WHO) has linked Roundup carcinogenic potential as it affects the human endocrinal system. In addition, it creates a strong European interest in genetically engineered seeds.

According to the International Panel of Experts on Sustainable Food Systems, these mergers would hand a few oligopolies control over 60% of the global market in seeds and pesticides.

Since Bayer submitted its bid, the European Commission has postponed making a final ruling five times. As explained by Commissioner Vestager, the delay allows companies to address concerns raised by the Commission.

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+