The European Commission has launched investigation on Bayer’s intended takeover of Monsanto
The European Commission announced on Tuesday that it has launched an investigation on Bayer’s intended takeover of Monsanto.
Competition Commissioner Margrethe Vestager has expressed concerns that the proposed €56bn takeover will give rise to an oligopoly in the farming industry, rising costs for farmers and consumers. The Commission will announce the result of its investigation by January 8, 2018, Il Sole24 reports.
Monsanto has a bad reputation in Europe, both because of its role in the development and promotion of genetically engineered seeds – arguably increasing bio-dependency of states – but also for the use of controversial glyphosates.
The deal was sealed in September 2016, allowing Bayer to emerge as the dominant market player in the wholesale of both pesticides and seeds, making the company a one-stop shop. At the time, analysts projected a 50-50% chance of gaining regulatory clearance for the takeover.
Farmers lobby groups in Europe and the United States are concerned that market consolidation in the supply industry will mean increased costs. And US authorities are not likely to welcome the move of Monsanto’s head of operations in Europe.
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