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Bayer deal has to clear big regulatory hurdles

Bayer announced plans early Wednesday morning to purchase Monsanto for 57-billion-dollars.  The agreement comes after months of negotiations.

Liam Condon, Bayer’s Head of Crop Science says the deal still needs to clear several regulatory hurdles – which could take some time.  “For a deal of this nature we’re assuming it will take about 12 months,” he says.  “We’re saying deal closure we’re expecting towards the end of next year.”

He tells Brownfield the deal will also need approval from key markets around the world – primarily the United States.  “But also Europe and Brazil and China probably another 20-plus smaller jurisdictions,” he says.  “But based on the very extensive analysis we’ve done – we’re very confident we’ll be able to stick to that time table.”

Monsanto Chief Technology Officer Robb Fraley says in terms of anti-trust laws, regulators around the world look at two things when companies like Bayer and Monsanto merge – whether there is overlap between the two businesses and if the merger will thwart innovation.  “The beauty of this transaction in my mind is that there is very little overlap,” he says.  “Bayer has a world class chemistry business and our focus is seeds and traits and data science.  So because of that very little overlap we expect this to be a very straightforward transaction.”

And Fraley says the deal will also increase innovation – which ultimately benefits farmers.

Following the global news conference to discus the merger, Liam Condon of Bayer and Dr. Robb Fraley with Monsanto held a call with a small group of reporters in the U.S.  You can listen to that call below.