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LONDON, UK / ACCESSWIRE / March 23, 2018 / Active-Investors.com has just released a free research report on Monsanto Co. (NYSE: MON). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=MON as the Company's latest news hit the wire. On March 21, 2018, European Commissioner for Competition, Margrethe Vestager, issued an official statement announcing the European Commission's (EC) conditional approval for the Bayer-Monsanto merger. Bayer AG had signed an agreement to acquire Monsanto in September 2018 in a deal valued approximately $62.5 billion. The EC gave its approval for the merger after both companies offered to take certain steps to fully address the EC's various competition concerns. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Arcadia Biosciences, Inc. (NASDAQ: RKDA), which also belongs to the Basic Materials sector as the Company Monsanto. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Monsanto most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=MON
The Bayer-Monsanto deal has received approval from over 30 antitrust regulators including Brazil, China, and South Africa and is awaiting approval from US Department of Justice (DoJ). Bayer and Monsanto expect to close the merger in Q2 2018 subject to receiving regulatory approvals including approval from US DoJ and fulfilment of other closing conditions.
Commenting on the matter, Margrethe Vestager, stated:
"The Commission has today decided to give conditional approval to Bayer's plans to buy Monsanto under EU merger rules. We were able to do so because of the significant remedies the Companies offered, which met our competition concerns in full."
Werner Baumann, CEO of Bayer, commented:
"Receipt of the European Commission's approval is a major success and a significant milestone. Together with Monsanto, we want to help farmers across the world grow more nutritious food in a more sustainable way that benefits both consumers and the environment."
Solutions offered by Bayer-Monsanto for addressing EC's concerns
The Bayer-Monsanto merger is expected to create one of the largest player in the both seeds and pesticides market. EC was mainly concerned that the merger would reduce competition not only in European markets but also globally in the areas of Seeds, Pesticides, and Digital agriculture.
To fully address the EC's various concerns both companies have suggested a solutions package valued €6 billion. The package ensures that any overlapped businesses are taken care of and the number of global players in the seeds and pesticides business remain unaffected even after the merger.
Seeds Business - Bayer and Monsanto compete in the European market in the vegetable seeds like tomato and cucumber, and oilseeds like rape and cotton seeds. Bayer has agreed to divest most of its global seeds and trait business, including its R&D unit to address EC's competition concerns in this area and ensure that there is a viable competitor for the customer and farmers. The divestment covers Bayer's businesses that do not compete with Monsanto not only in European markets but also globally.
Pesticides business - In the pesticides business, currently Bayer's glufosinate competes with Monsanto's glyphosate. Bayer is also conducting research to develop an alternative for glyphosate. The EC's concern was that the merger would impact important research efforts in this area. To address EC's concerns about this segment, Bayer has agreed to divest its glufosinate business including research while Monsanto has agreed to divest certain assets in the seed treatments. This will ensure that the competition is alive in this sector.
Digital Agriculture Business - EC also had concerns regarding both companies being active in the emerging field of digital agriculture wherein farmers are given recommendations on the number of seeds, amount of pesticides, and quantity of fertilizers to be used based on field data, weather data, agronomic knowledge, and algorithms. This emerging field is not only important to farmers but also for the environment. Bayer which had launched a digital agriculture product - Xarvio in Europe recently has given a commitment that it would licence its global digital agriculture products and pipeline products to the Company acquiring Bayer's divested businesses.
Bayer has identified Germany's BASF SE as the potential company which can acquire the €6 billion divestment package and address all EC's competition concerns. Bayer believes that BASF is an ideal buyer given that it is not active in the seeds business and it does not sell any herbicide that competes with glyphosate in the European markets. BASF has the global scale and financial strength to compete with Bayer.
EC's stand
The EC has requested time till April 16, 2018, to evaluate the suitability of BASF as the buyer for the divested businesses of Bayer-Monsanto and verify if BASF has any links with the two companies which will impact BASF's ability to compete in the said segments. The EC has said that it would give its final approval for the Bayer-Monsanto merger only after it completes this evaluation.
EC has also said that the recent consolidation in the agrochemical sector due to Dow-Dupont, ChemChina-Syngenta, and now the Bayer-Monsanto mergers have raised concerns amongst consumers, farmers, and environmentalists that it would greatly reduce competition. However, steps taken by EC ensures that these transactions did not impact competition, price, or innovation in the European markets.
Stock Performance Snapshot
March 22, 2018 - At Thursday's closing bell, Monsanto's stock dropped 1.25%, ending the trading session at $117.53.
Volume traded for the day: 2.60 million shares.
Stock performance in the previous three-month period - up 1.32%; past twelve-month period - up 3.67%; and year-to-date - up 0.64%
After yesterday's close, Monsanto's market cap was at $51.74 billion.
Price to Earnings (P/E) ratio was at 21.73.
The stock has a dividend yield of 1.84%.
The stock is part of the Basic Materials sector, categorized under the Agricultural Chemicals industry.
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