Bayer to win EU approval for $62.5 bln Monsanto deal - sources

Vilmorin & Cie SA

28/02/2018 12:35

* Bayer to give BASF licence to digital farming data-source 
    * EU expected to issue decision before April 5 deadline 
    * Deal could crush competitors - environmental group 
 
 (Adds Vilmorin, Friends of the Earth Europe comments, details) 
    By Foo Yun Chee 
    BRUSSELS, Feb 28 (Reuters) - German drug and crop chemicals 
maker Bayer  BAYGn.DE  is set to win conditional European Union 
antitrust approval for its $62.5 billion bid for world No. 1 
seed company Monsanto  MON.N , two people familiar with the 
matter said on Wednesday. 
    The takeover, one of a trio of major deals in the 
agribusiness sector in recent years, would create a company with 
a share of more than a quarter of the world's seed and 
pesticides market. 
    Shifting weather patterns, competition in grain exports and 
a souring global farm economy have spurred consolidation among 
the major players, triggering protests from environmental and 
farming groups worried about their market power. 
    Bayer has already pledged to sell certain seed and herbicide 
assets for 5.9 billion euros ($7.2 billion) to BASF  BASFn.DE  
to address EU regulatory concerns.  
    The company will also give BASF a licence to its digital 
farming data, and it appears BASF will have exclusive access as 
Bayer has not offered a legal obligation to license to other 
rivals, a person with knowledge of the matter has told Reuters. 
    Earlier on Wednesday, Bayer said additional antitrust 
concessions would include the sale of its vegetable seeds 
business, confirming a Reuters report.  urn:newsml:reuters.com:*:nL8N1QI19F  urn:newsml:reuters.com:*:nL8N1PY7AR 
    The European Commission, which is expected to issue a 
decision on the deal ahead of its April 5 deadline, declined to 
comment. 
    Bayer also declined to comment on the sources' comments, 
saying it continued a constructive dialogue with the EU 
competition watchdog. It added the regulatory process in Europe 
was further advanced than in the United States where the deal 
also requires clearance. 
    French seeds producer Vilmorin said it would consider taking 
over some vegetable seed activities put up for sale by Bayer. 
    "It will depend on the breakdown that will be made. If there 
are clever and targeted things to do, why not, but if it's 
all-encompassing then clearly we don't have the profile for it 
to be accepted by the authorities," Vilmorin Chief Executive 
Daniel Jacquemond told reporters after unveiling first-half 
results.   
    The Bayer-Monsanto tie-up has sparked criticism from 
environmentalists and some farming groups concerned about its 
market power and first mover advantage in digital farming data. 
    Some who met on Tuesday with European Competition 
Commissioner Margrethe Vestager, who has received more than 
50,000 petition emails and more than 5,000 letters opposed to  
the deal, were not reassured. 
    "Approving this merger would create the world's biggest 
agribusiness company, potentially crushing competitors and 
establishing an unprecedented monopoly on lucrative farming 
data," said Adrian Bebb at environmental lobbying group Friends 
of the Earth Europe. 
    "Public opinion is against the merger, and farmers and 
consumers would have every right to be outraged by the 
Commission giving it the green light." 
    ($1 = 0.8187 euros) 
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
Bayer goes through "ups and downs" as Monsanto deal drags on    
 urn:newsml:reuters.com:*:nL8N1QI19F 
Bayer offers vegetable seeds disposal to clinch Monsanto deal 
-sources     urn:newsml:reuters.com:*:nL8N1PY7AR 
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 (Reporting by Foo Yun Chee 
Additional reporting by Ludwig Burger in Frankfurt and Sybille 
de La Hamaide in Paris 
Editing by Alexander Smith and Mark Potter) 
 ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters 
Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) 
 
Keywords: MONSANTO M&A/BAYER EU