In December 2016 Monsanto shareholders voted in favour of the sale of the company to Bayer for US$66 billion, making it the largest-ever foreign corporate takeover by a German company.
The deal requires approval from about 30 regulatory agencies around the world. The Competition Commission of South Africa (CCSA) was the first to be officially notified of this global transaction on 1 February 2017, and conditionally approved the transaction on 3 May 2017 and made it public on the 8th May 2017. Other competition authorities elsewhere have been or will be notified.
Both Bayer and Monsanto are major global manufacturers of agrochemicals and seeds, including genetically modified (GM) seed. The merged entity will be the world’s largest supplier by sales of both seeds and pesticides, controlling up to 30 percent of the world’s commercial seed markets and 24 percent of the world’s pesticide markets. Bayer and Monsanto are major actors in South Africa’s seed and agrochemical industries.
The ACB made submissions to the Competition Commission of South Africa (CCSA) urging it to consider the wider implications of these mergers beyond a narrow view of competition in segmented product markets. These include the entrenchment of the dominant technological platform in agricultural