A unit of Brazil’s competition regulator Cade said the $66 billion takeover of Monsanto Co. (MON.N) by German life sciences firm Bayer AG (BAYGn.DE) could be detrimental to competition, a document released on the agency’s website shows.
The Bayer-Monsanto transaction, announced in September 2016, would create the world’s largest integrated pesticides and seeds company.The Cade unit said that anticipated merger-related efficiencies were insufficient to mitigate its competition concerns, according to the document dated Oct. 3.
The Cade unit said it had not engaged in an in-depth discussion with Bayer and Monsanto related to its suggested “remedies.”
Bayer said the unit’s opinion is non-binding and does not mean the transaction will be blocked. Monsanto did not immediately reply to a request for comment.
The unit said solutions included creating or strengthening another player to compete in the markets for soy and cotton seeds and in the sphere of biotech development.
Deal opponents have asked Cade to block it or force divestments including Monsanto’s Intacta RR2 IPRO soy seed technology and Bayer’s glufosinate ammonium herbicides.