Bayer’s takeover of Monsanto moved one step closer yesterday (Tuesday, May 29) after the Antitrust Division of the United States Department of Justice (DOJ) granted conditional approval for the proposed acquisition.
This follows on the European Commission’s decision to conditionally approve the deal back in March of this year. Monsanto is the company which manufactures the pesticide Roundup.
The proposed takeover deal is expected to reach a value in the region of $60 billion.
Last month, it was reported that “an agreement in principle” on the takeover deal was reached with the US DOJ – causing shares in Monsanto to surge by over 6%.
Commenting on the latest development, Bayer CEO Werner Baumann said: “Receipt of the DOJ’s approval brings us close to our goal of creating a leading company in agriculture.
We want to help farmers across the world grow more nutritious food in a more sustainable way.
It is understood that Bayer has now obtained almost all clearances which are conditions for closing the transaction. The company expects to receive any outstanding approvals required for completing the transaction very shortly.
Following the receipt of outstanding approvals, Bayer will become the sole shareholder of Monsanto Company.
According to the DOJ’s conditional approval, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been accomplished. This is expected to be in approximately two months, a statement from Bayer explained.
In the 2017 fiscal year, the Bayer Group employed around 99,800 people and had sales of approximately €35 billion.