CCI provides clearance to $66bn Bayer-Monsanto deal
The acquisition of Monsanto would create a global leader in agriculture with a broad portfolio across agro products and chemicals for Bayer.
The Competition Commission of India (CCI) approves the proposed deal of acquisition of US-based biotechnology firm Monsanto by the German giant Bayer, as per media report. The deal is valued at $66bn. The approval is subject to modifications to the long-pending deal.
The deal was announced in September 2016 by both the companies. The deal is significant in the midst of Monsanto facing opposition since past one year in India over promotion of genetically modified crops. Monsanto’s is also facing issue pertaining towards royalty and patent issues.
India is one of the 30 countries whose approval is needed for the merger of worldwide operations of both the companies. The major approvals are still in pipeline from the US Department of Justice, as also regulators in Canada and Mexico.
The acquisition of Monsanto would create a global leader in agriculture with a broad portfolio across agro products and chemicals for Bayer. Monsanto would add seed business to Bayer’s significant crop science and pharmaceutical business in India.
CCI had launched a public consultation process, in January 2018, to determine whether the merger between the global giants, to create the world’s largest seeds and pesticide firm, would have any adverse impact on competition in India. In India, both entities have a presence in production and sale of vegetable seeds, cotton seeds as well as in production and sale of non-selective herbicides.
The stocks of Bayer Cropscience and Monsanto India are up by 2% each, on BSE at 9.30am.
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