Bayer and Monsanto are closer to completing their long-awaited merger, but Bayer will divest its vegetable seeds business to complete the deal.
In its most recent earnings report, Bayer touts gaining approval of the Monsanto acquisition from more than half of the 30 worldwide authorities involved. However, there is still work to be done so they’ve pushed the deal, which was originally slated for early 2018, back to the second quarter of the year.
Bayer will divest its entire vegetable seed business to complete the deal. This commitment comes on the heels of Bayer divesting its LibertyLink business, associated herbicides and soybean businesses, to BASF.
The company most recently gained approval from the Brazilian government. Notably, the U.S., European Union, Canada and Mexico have yet to give the green light.
“Our goal now is to be able to close the transaction in the second quarter of 2018,” says Werner Baumann, Bayer management board chairman adding that while Bayer is continuing to work with regulatory authorities it’s evident this process will take more time. “This does not affect our expectation of a successful conclusion to the regulatory review, nor our conviction that this is the right step.”
All sales and divestments are subject to the successful closure of the proposed acquisition.