CCI gives its conditional approval to Bayer’s acquisition of Monsanto

The Competition Commission of India has announced that it has cleared the acquisition of Monsanto by Bayer, subject to compliance of certain modifications

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New Delhi: Germany based Bayer’s proposed $66-billion acquisition of US biotech firm Monsanto that was announced in September 2016 has got a major shot in the arm as India’s Competition Commission of India (CCI) cleared the acquisition.

This is an important development for the company as Indian market adds a huge value to the company’s future plans. India is among the 30 countries where approval is needed for the merger of the worldwide operations of the two companies.

The CCI had launched a public consultation process in January 2018 to determine whether the merger between the global giants to create the world’s largest seed and pesticide company would have an adverse impact on competition in the country.

Bayer said in a statement that the CCI has conditionally approved its proposed acquisition of Monsanto. “Obtaining clearance from the CCI is another milestone towards the global acquisition of Monsanto. The combination brings together two different, but highly complementary businesses,” Bayer said in a statement.

Bayer said its combination with Monsanto will create a global leader in agriculture with a broad portfolio, providing superior product offerings and tailor-made solutions to farmers across all crops in all regions.

Monsanto has long faced an opposition in India over the promotion of genetically modified crops besides controversies and litigations surrounding the royalty payments. It would be interesting to see the strategy of Bayer on the same.