MOSCOW (MRC) -- The European Commission approved on April 30 the acquisition of parts of Bayer’s business by fellow German chemical major BASF, after a pledge by the German pharmaceutical giant to sell some of its assets to address competition concerns raised by Brussels, according to NewEurope.
Bayer had agreed on April 26 to sell some more parts of its crop-science business for EUR1.7 billion, with BASF having already agreed to acquire a EUR5.9 billion remedy package of crop science businesses last October.
The Bayer Divestment Business includes Bayer’s entire vegetable and broad acre seed businesses, including its R&D organisation. A number of Bayer non-selective herbicide assets, in particular Bayer’s global glufosinate business assets and three lines of research, as well as Bayer’s nematicidal seed treatment assets and products (sold under the Poncho, VOTiVO, COPeO and ILeVO brands), and Bayer’s global digital agriculture assets and products are subject to a temporary licence from BASF to Bayer).
"Since BASF does not currently sell seeds or non-selective herbicides and has only recently started to develop a limited offering in digital agriculture, the Commission did not identify competition concerns with most parts of the transaction," said the Berlyamont.
Concerns remain, however, regarding reduced innovation competition in the European Economic Area (EEA) for the development of certain non-selective herbicides and potential competition for the production of nematicidal seed treatments. To address this, BASF has committed to divest one of its overlapping lines of research for the development of non-selective herbicides and a pipeline nematicidal seed treatment product with the branded name Trunemco.
The Commission has suggested that its recent decision "will not prejudge the outcome of that separate assessment," as this is an ongoing process for the EU Competition watchdog.
As MRC informed earlier, on 10 April 2018, Bayer shares jumped nearly 5% following a media report that the US Justice Department will allow the German drugs and pesticides group to acquire Monsanto in a USD62.5 billion deal.
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.
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