The US Department of Justice has reached a settlement that would allow Bayer AG’s $66 billion takeover of Monsanto Co, requiring the German company to sell $9 billion in agriculture assets first.
The merger, as initially proposed would have harmed consumers and farmers by eliminating competition, the Department of Justice reported to BBC. However, the Trump administration is satisfied with the terms of the settlement announced Tuesday.
The companies reached a settlement with the Justice Department that resolves the government’s concerns that the merger as initially structured would harm consumers and farmers, the U.S. said in a statement Tuesday. The agreement requires the sale of assets to BASF SE that Bayer has previously announced. The divestiture package is worth about $9 billion, the largest in a U.S. merger enforcement case, the government said.
Once combined, Bayer-Monsanto will be the world’s biggest agrochemical corporation, surpassing DowDuPont Inc. and China National, which acquired Sygenta AG last year.
