uploads///agriculture _

Bayer-Monsanto Deal Receives European Union Approval

By

Mar. 22 2018, Updated 8:09 a.m. ET

EU approves Monsanto-Bayer deal

On March 21, the year-long pending merger between agricultural (XLB) giants Monsanto (MON) and Bayer inched a step closer to closure. The companies received approval from the antitrust watchdogs in the EU (European Union). Following this news release, Monsanto closed about 57 basis points higher at $119, while Bayer rose by 15 basis points to 94.4 euros.

Article continues below advertisement

Merger timeline

This news signifies that the EU antitrust agencies have satisfied their concerns related to this deal. In a press release from August 22, 2017, the European Commission identified concerns such as the limited choice of pesticides and a high market share for seeds among companies in Europe as well as around the world. According to the European Commission, Monsanto and Bayer are two companies among a handful of players that have the capability to develop new solutions in this field. Bayer offered to divest assets to satisfy antitrust concerns.

Pending approvals

This deal would be the third largest merger in the chemicals space following the merger between Dow Chemicals and DuPont (DWDP) and between ChemChina and Syngenta (SYT). The merger was expected to close by early 2018. However, the deal may not meet that timeline given that approvals from Russia and the US are still pending. In the next article, we’ll discuss some of the issues concerning merger approval.

Advertisement

More From Market Realist

  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.