Bayer Monsanto Deal

Bayer shares are down 31% since the company completed the $63 billion takeover of Monsanto, prompting some investors to demand the resignation of Chief Executive Officer Werner Baumann.

The case against Monsanto, bought by Bayer this year for $63 billion, is the first of more than 5,000 similar lawsuits over the company's glyphosate-based weedkillers, including its Roundup brand

It said the merged entity will follow a policy of non-exclusive licensing of non-selective herbicides or their active ingredient(s)

Bayer AG, along with its Indian arm Bayer CropScience, has proposed to buy up to 44,88,315 shares, representing 26 per cent of the fully diluted voting equity share capital of Monsanto India

Bayer will become the sole shareholder of Monsanto on June 7

Also, Bayer raised 4.5 billion euros more from selling down its stake in plastics maker Covestro than initially expected

The settlement came together after Justice Department antitrust officials pressed for significant divestitures to remedy the competition problems from combining the two companies

Both Bayer and Monsanto had subsidiaries in India, making it mandatory for them to receive clearance from the CCI

The tie-up is set to create a company with control of more than a quarter of the world's seed and pesticides market

The takeover, one of a trio of major deals in the agribusiness sector in recent years, would create a company with a share of more than a quarter of the world's seed and pesticides market

German chemical and pharma major Bayer today expressed confidence that it would secure fair trade regulator Competition Commission of India's (CCI) nod by April or May for the USD $66 acquisition of US-based biotech major Monsanto.The deal couldn't be closed globally unless CCI gives its nod as mandated by the Indian Competition Act of 2002.India is one of the 30 countries whose approval is needed for the merger to go through. As many as 14 countries have approved the merger. The Competition Act 2002 mandates that CCI's approval is required along with other agencies before an entity closes its deal globally or else penal provisions can be imposed on the combined entity.Earlier, this month, the CCI launched a public consultation process to determine whether the merger between the global giants, to create the world's largest seeds and pesticide firm, will have any adverse impact on competition in India.The Bayer-Monsanto deal would create the world's largest seeds and pesticide firm. ...

The Competition Commission of India (CCI) has launched a public scrutiny of finer details of the proposed $66 billion Bayer-Monsanto deal, finding prima facie that the deal has, or likely to have an appreciable adverse effect on competition.The Bayer-Monsanto deal would create the world's largest seeds and pesticide firm. CCI places a deal for public consultation if it is of the "prima facie opinion that the combination has, or likely to have an appreciable adverse effect on competition".Prior to this, CCI had launched similar public scrutiny in the case of Ranbaxy-Sun Pharma and Holcim-Lafarge merger deals, among others.The comments with respect to the Bayer-Monsanto deal need to be submitted to the Competition Commission of India (CCI) within 15 days, along with supporting documents on how the merger can adversely impact the concerned person or entity, the CCI said in a public notice.It further said that "the Commission is not likely to consider unsubstantiated objections".Bayer in .

Mergers and acquisitions beyond a certain threshold require approval of the CCI