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Seed of doubt over major merger

Wednesday, August 23, 2017 - 01:32

The European Commission has started an in-depth investigation of Bayer's planned $66 billion takeover of U.S. seeds group Monsanto, saying it was worried about competition in various pesticide and seeds markets. Laura Frykberg reports.

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Combining Bayer and Monsanto.. Would create the world's largest seed and pesticide company.. And that - according to the European Commission.. Could be a potential recipe for disaster.. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "Things like the seed business is an area they will look at, they'll also be looking at pesticides herbicides in these areas of the business where there is a lot of overlap between the two companies and where a combination of the two would create quite a dangerous situation in which they have this kind of monopoly." The commission's looking into whether the $66 billion merger... Would result in higher prices, lower quality and less choice for consumers. Under anti-competition laws - it has the authority to stop the deal altogether... Although past cases suggest that's unlikely. SOUNDBITE (English) OANDA SENIOR MARKET ANALYST, CRAIG ERLAM, SAYING: "As we've seen from previous deals of this nature they won't necessarily want to block it. They're going to find ways to make it feasible in such a way that it doesn't have negative implications for competition for prices for competitiveness and for innovation." Previous concessions include when ChemChina had to sell a large chunk of its subsidiary.. In order to takeover Syngenta. The commission says Bayer has offered to give up some assets... But so far -it's not enough... It doesn't have long to decide if it wants to make any more. The commission makes its final ruling in January.

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Seed of doubt over major merger

Wednesday, August 23, 2017 - 01:32