A unit of Brazil’s competition regulator Cade said the $66 billion takeover of Monsanto Co. by German life sciences firm Bayer AG could be detrimental to competition, a document released on the agency’s website shows.
The Bayer-Monsanto transaction, announced in September 2016, would create the world’s largest integrated pesticides and seeds company.
The Cade unit said that anticipated merger-related efficiencies were insufficient to mitigate its competition concerns, according to the document dated Oct. 3.
It recommended what it termed as “structural solutions” as a condition for final approval the deal, which will be in the hands of Cade’s seven-member tribunal.
The Cade unit said it had not engaged in an in-depth discussion with Bayer and Monsanto related to its suggested “remedies.”
In an emailed statement to Reuters, Bayer said the unit’s opinion is non-binding and does not mean the transaction will be blocked.
The GLP aggregated and excerpted this article to reflect the diversity of news, opinion and analysis. Read full, original post: Brazil agency urges conditions for approving Bayer-Monsanto tie-up