Brazil’s antitrust agency CADE (Administrative Council for Economic Defense) voted 4-2 to approve the acquisition of Creve Couer, Missouri-based Monsanto([stock_quote symbol=”MON”]) by Germany’s Bayer([stock_quote symbol=”BAYRY”]). The transaction, announced in 2016 with $66 billion price tab, would create would create the world’s biggest seeds and pesticides company — a conglomerate of over 140,000 employees, active in at least 75 countries, with annual revenue of about $25.8 billion.
To approve the move, CADE accepted Bayer’s proposal to divest assets and soy and cotton seed businesses, as well as the sector of non-selective glufosinate-ammonium-based herbicides, which will be transferred to another German giant, BASF([stock_quote symbol=”BAS”]), in a transaction valued at $7 billion.
Under the tie-up, Bayer and Monsanto have proposed “behavioral commitments” such as transparency in commercial policies, as well as relinquishing exclusivity in sale channels and product bundling. They also agreed on the broad, non-exclusive licensing of their products.
A total of 29 countries and international market-regulation entities have been notified of the merger. Half of them have yet to issue a ruling, including antitrust agencies in the U.S. and the EU.