The US Justice Department (DOJ) will allow Bayer’s deal to acquire Monsanto for US$62.5 billion, the Wall Street Journal reported citing Dow Jones sources.
The acquisition was in limbo until the companies and the DOJ could come to an agreement, which has now been established on principle. Bayer CEO Werner Bauman and Monsanto CEO Hugh Grant met recently with DOJ officials, according to the report.
The meetings resulted in the companies pledging to sell further assets in order to win government approval. After Bayer won EU antitrust approval on March 21 for the deal, US officials expressed concern that a combination would disadvantage American farmers. The use of genetically modified seeds by US farmers would leave them unable to compete with their European counterparts, where use of genetically modified seeds is banned.
Bayer will divest business assets related to seed treatment, as well as yield ownership of parts of its digital agriculture business, the report said.
Full Content: Wall Street Journal