Monsanto, Bayer to Shed Billions in Assets Ahead of Merger Review

Bayer and Monsanto will soon be sending billions in assets to the chopping block to help their proposed merger bid sail through regulatory review.

Bayer and Monsanto will soon be sending billions in assets to the chopping block to help their proposed merger bid sail through regulatory review.

According to a report in Reuters, the companies are looking to sell assets worth about $2.5 billion ahead of their proposed $66 billion tie-up.

Bayer advisors are reportedly planning to send information to potential bidders next week about the assets the company wants to sell.

The sources did not know exactly which parts of the company Bayer and Monsanto plan to sell, but analysts predict that Bayer could divest soybean, cotton and canola seed assets along with crops that are designed to be resistant to glufosinate herbicide (which compete with Monsantoโ€™s Roundup Ready seeds).

BASF is expected to potentially scoop up some of the divestitures from Bayer or Monsanto. While many major players in the chemicals industry have sought growth through mega mergers, BASF has mostly remained on the sidelines, opting for smaller acquisitions instead.

Bayer, a pharmaceutical and crop chemical powerhouse, and Monsanto, which is focused on seeds, reportedly expect their merger to pass the regulatory sniff test because the companies have limited overlap in their portfolios.

Another major merger in the industry โ€” Dow and DuPont โ€” has seen multiple delays as it has gone through regulatory review in the European Union, but sources close to the deal have reported that it is likely to be approved soon.

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