EU to Open Review of Bayer, Monsanto Deal--Update
June 29 2016 - 6:24AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS--The European Union's antitrust agency signaled
Wednesday it would conduct a strict review of Bayer AG's pending
$62 billion purchase of Monsanto Co. and similar mergers by rivals,
an unusually early statement before the EU has received formal
notification of a deal.
"Our final decision [on the Bayer- Monsanto deal] must strictly
and impartially apply European merger control rules", said European
Union Antitrust Chief Margrethe Vestager in a letter to two Members
of the European Parliament posted on the Green Party's website.
The Green Party lawmakers, Martin Haeusling and Sven Giegold,
had voiced concerns about the merger to the European Commission,
the bloc's antitrust agency.
"In our investigation, we will take into account your concerns
about the effects of the Bayer-Monsanto merger on prices, the
variety of available seed products as well as research and
innovation," Ms. Vestager said.
Bayer's bid comes at a time when other rivals in the industry,
including Dow Chemical Co., DuPont Co. and Syngenta AG, have also
made plans to merge. That could mean that some markets may already
be more concentrated by the time Bayer formally notifies any deal
with the EU regulators.
But in the letter, Ms. Vestager suggested the EU would consider
the context that several mergers in the sector would be taking
place at the same time.
"I can assure you that my case teams will examine the three
announced mergers in the seeds and agrochemicals sector very
carefully,"
The European Commission has the power to block the deals or
demand the parties submit remedies, such as divesting assets, to
assuage any competition concerns.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
June 29, 2016 06:09 ET (10:09 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Dow (NYSE:DOW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dow (NYSE:DOW)
Historical Stock Chart
From Apr 2023 to Apr 2024