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CCI approves USD 66 bn Bayer-Monsanto deal

Press Trust of India  |  New Delhi 

Fair trade regulator has approved the German giant Bayer's proposed USD 66 billion acquisition of US-based biotech firm Monsanto, subject to certain modifications to the long-pending deal.

The approval to the deal, announced in September 2016, assumes significance in the wake of facing opposition from various quarters within over promotion of genetically modified crops, as also over royalty and patent issues.

The clearance from the (CCI) is one of the several regulatory approvals required by in various countries to close the deal.

Announcing its approval today, the tweeted that it has cleared "acquisition of by AG, subject to compliance of certain modifications".

Mergers and acquisitions beyond a certain threshold require approval of the

is one of the 30 countries whose approval is needed for the merger of worldwide operations of the two companies. The major approvals still required are from the as also regulators in and

After getting the CCI nod, said in a statement that the CCI has conditionally approved its proposed acquisition of

"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.

The acquisition of Monsanto will create a global leader in agriculture with a broad portfolio, providing superior product offerings and to farmers across all crops, in all geographies, the German and pharma firm said.

In January, CCI had 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.

In India, both entities have presence in production and sale of vegetable seeds, cotton seeds as well as in production and sale of non-selective herbicides, according to that public notice.

Both the companies have presence in India, with the US firm selling genetically modified (GM) cotton seeds in the country for more than a decade.

Bayer group is present in India since 1896 and it has two divisions -- crop science and The group has one listed entity in India -- that posted a revenue from operation of nearly Rs 3,000 crore last fiscal.

Bayer India had an annual revenue of 600 million euros (about Rs 4,700 crore) in 2017, Richard van der Merwe, the senior Bayer representative, South Asia, had said in January this year.

Monsanto would add seed to Bayer's already significant crop science and in India.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 22 2018. 18:35 IST