The u.s. justice department (DoJ) has authorized Tuesday, may 29, the repurchase by the German Bayer from its rival american Monsanto but at the cost of significant divestments, a total of close to $ 9 billion. The integration of Monsanto within the German group of the pharmacy and agrochemicals will be effective once it has finalized the sale to the giant of the chemistry of BASF activities in the field of seeds, pesticides and agriculture digital, said Bayer in a press release.
It is “the largest divestiture ever required by the United States,” in order to maintain competition in the sale of agricultural products, said the assistant attorney general Makan Delrahim, quoted in a press release from the DoJ.
The assignment of activities should be cordoned off “in about two months,” according to the group of Leverkusen, germany. Bayer shall then become the sole owner of Monsanto has paid for this $ 66 billion (56 billion euros). It is the largest acquisition to date by a German group abroad. The u.s. authorities had initially expressed serious reservations because of the dominant position that it must allow the two companies together.
To a “leading company in the agricultural sector”
“With the green light from the ministry of Justice, we are now close to the objective of creating a leading company in the agricultural sector,” said Werner Baumann, CEO of Bayer. Bayer has already received approvals from more than half of the 30 relevant regulatory authorities around the world, including the EU, Brazil and China.
“We want to help farmers worldwide to produce more food and of better quality in a more sustainable way,” said Mr. Baumann in a press release. The wedding project Bayer-Monsanto had elicited upon its announcement in September 2016 significant waves of protests around the world.
This approximation is part of a trend to the concentration in the agrochemical industry, driven especially by the lower margins of the groups of this sector with the agricultural prices remain low.