Bayer Must Divest Assets to Acquire Monsanto
CBJ — The Competition Bureau is forcing Bayer to divest some of its Canadian canola, soybean and vegetable seed, traits and herbicide assets before it will allow the German pharmaceutical giant to purchase agricultural business Monsanto Company.
If the assets aren’t divested the takeover would likely “substantially lessen” competition in Canada’s seeds and crop treatment sector.
Bayer previously said the assets would be sold to German chemical company BASF for about $7 billion in U.S. dollars.
Bayer has canola seed facilities in Alberta, Saskatchewan and British Columbia and herbicide operations within the country.
Its consent agreement comes a day after Bayer won approval from the European Union and the U.S. for its US$66-billion takeover of Monsanto.
Bayer also needs approval from Mexico to complete the transaction.