COMPETITION COMMISSION
Nod for Bayer’s Monsanto merger
The takeover of US-headquartered Monsanto by German multinational Bayer gets the green light in SA
The Competition Commission has conditionally approved the takeover of US-headquartered Monsanto by German multinational Bayer that will create an agricultural giant with a combined market value exceeding $150bn. The transaction, which was first announced on May 23 2016, values Monsanto at $66bn, including debt. Bayer will buy all the shares at a 37% premium to Monsanto’s closing share price on May 9 2016. The merged entity would be the world’s largest supplier of seeds and pesticides, controlling around a quarter of these respective markets, according to the African Centre for Biodiversity. The deal takes place amid other large mergers in the seed and agro-chemicals sectors, including between Dow and DuPont, as well as China National Chemical Corporation and Swiss-based Syngenta. These mergers could impede research and development, increase input prices and reduce choice available to farmers, the centre said. In SA, Bayer is active in the crop-protection business through the sale of...
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