More Bayer-Monsanto

By Pam Smith
DTN Progressive Farmer Crops Technology Editor

DECATUR, Ill. (DTN) -- Reports that the U.S. Department of Justice will bless Bayer's acquisition of Monsanto are swirling through newswires.

A report from Dow Jones on Monday said the sale would be conditional on the sale of further assets to gain antitrust approvals.

The favorable nod would mark a breakthrough in the merger review, which has been pushed back multiple times as regulatory agencies whittle away similar holdings. So far, BASF looks to be the majority spinoff benefactor if the deal finalizes.

Neither Monsanto nor Bayer communications teams would confirm the news reports.

Bayer gave DTN a prepared statement: "As we've said from the beginning, this opportunity is about combining highly complementary businesses and bringing new innovative solutions to our customers. We remain confident in our ability to obtain all necessary regulatory approvals and look forward to continuing to work diligently with regulators to support that process. We anticipate closing in second quarter 2018."

Monsanto's statement to DTN came from their last week's earnings statement: "With Bayer leading the regulatory process for the pending merger, the companies continue to cooperate with regulators and have seen solid progress. The number of anti-trust approvals continues to increase, most notably from the European Commission, China and Brazil, and, as a part of this process, Bayer has announced several planned divestitures. With these actions, Monsanto continues to be confident in the companies' collective ability to secure the required approvals within the second calendar quarter of 2018 and in the time contemplated by the agreement."

Environmental group SumOfUs called the move "deeply disappointing" and stated: "This merger is a dangerous consolidation of corporate power and massive threat to food supplies and farmers around the world. A merged Bayer-Monsanto will be relentless in its pursuit and prioritization of corporate profits over the protection of small farms— eventually driving up prices for consumers. Farming families and communities across the US will carry the burden of this giant merger."

News reports were not specific as to what additional sales would be necessary to meet DOJ's approval. The European Commission recently asked Bayer to divest its vegetable seeds unit called Nunhems. Monsanto has breeding efforts in many of the same vegetable crops, as well as melons, within their DeRuiter and Seminis brands. Monsanto was also ask to spin off its Nemastrike seed treatment.

On Oct. 13, 2017, Bayer agreed to sell selected crop science businesses to BASF for nearly $7 billion. This first divestiture covered Bayer's global glufosinate-ammonium business and the related LibertyLink technology for herbicide tolerance. It includes most of the company's field crop seed businesses and research and development capabilities. The seed businesses being divested include the global cotton seed business (excluding India and South Africa), the oilseed rape/canola business in North America and Europe and the soybean seed business.

Regulators from Canada and Mexico have yet to rule on the combination. Any sales and licenses are still subject to a successful closing of the proposed acquisition of Monsanto.

Pamela Smith can be reached at Pamela.smith@dtn.com

Follow her on Twitter @PamSmithDTN

(AG)

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