Bayer officials no longer expect their planned $66 billion acquisition of Monsanto to close at the end of 2017, saying instead it should close early 2018, according to Dow Jones. The company recently applied to extend the European Commission review deadline for the proposed deal.
Dow Jones reports Bayer representatives say an extension facilitates “an appropriate evaluation given the size of the transaction.”
Bayer and Monsanto await approval from several countries and will be required to divest Bayer’s cotton seed and global Liberty Lint trait technology and any associated Liberty brand chemicals to meet requirements. As more countries review the deal, more divestments could be required.
The companies say the acquisition will lead to $2.63 billion annual spending on research and development, with 10,000 employees dedicated to it. If combined, the companies plan to pair the chemical, data science and seed research sides for what they say will be streamlined, simultaneous innovation. For example, instead of creating a herbicide chemistry and then waiting up to ten years for the accompanying seed technology the two could launch together, leaders from both companies have said.