Deals
Bayer-Monsanto Combination Likely Too Big in U.S. Cottonseed
- U.S. data show both companies had about 58% of market in 2016
- Monsanto faced similar concerns after acquisition 9 years ago
Bayer, Monsanto CEOs on Getting Deal Done
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Bayer AG’s plan to acquire Monsanto Co. is likely to spur U.S. regulators to demand the sale of some cottonseed assets to alleviate concerns that the $66 billion deal could hurt competition in one of the country’s largest row crops.
U.S. government data shows the companies had about 58 percent of U.S. cottonseed sales this year, down from 70 percent last year, which means it’s almost certainly an area they’ll have to address. Monsanto Chief Executive Officer Hugh Grant said Wednesday on a conference call to discuss the deal with analysts that there’s "very little overlap" with Bayer. The German company declined to discuss which assets might need to be sold in order to get regulatory approval.