BERLIN, March 21 (Xinhua) -- The European Commission has approved the mega-takeover of U.S. agrochemical company Monsanto by its German rival Bayer on Wednesday.
EU competition commissioner Margrethe Vestager told press that the sale worth 51 billion euros (62.6 billion U.S. dollars) would be permitted by the bloc's antitrust watchdog. However, Bayer would have to fulfill significant commitments in shedding business units valued at more than 6 billion euros to prevent the Leverkusen-based firm from becoming too dominant in some of its markets after the acquisition.
"This way it can be ensured that effective competition on products and innovation continues after the merger in the markets for seeds, pesticides and digital agriculture," a statement by Vestager read.
Critics have warned following revelations of the take-over that Bayer would be able to corner its international agrochemical competitors by merging with Monsanto and hence becoming the industry's single largest firm.
Among others, Bayer has consequently agreed to sell almost all of its global seeds businesses, including related research, to Ludwigshafen-based BASF.
Additionally, the fellow German chemicals giant is set to acquire a license from Bayer for its existing and prospective digital agriculture products.
Responding to the news on Wednesday, Bayer described the positive decision by the Commission as a "great success" and "milestone." Bayer and Monsanto want to complete the transaction by the second quarter of 2018. The approval of U.S. antitrust authorities for the merger is still pending.
Founded in 1863, Bayer employs over 99,000 staff across the world and recorded annual gross revenue of 35 billion euros in 2017. Monsanto, which is mainly known as the producer of the controversial pesticide glyphosate, has 24,000 global employees and recorded annual gross revenue of 13.5 billion dollars in 2016.
