Mexico: COFECE sets conditions on Bayer-Monsanto merger

Mexico’s Federal Commission for Economic Competition (COFECE) announced Monday that the purchase of Monsanto by Bayer will have to be conditioned, due to concerns over its impact on the Mexican seed market. The company must divest its business in genetically modified cotton seeds, crop seeds, and certain herbicides.

COFECE said that after the merger operation Bayer would become the sole supplier of genetically modified cotton seeds in Mexico and would obtain a significant share in the seed market for a large number of crops.

The Mexican regulator argued that Bayer should sell these businesses to its German rival BASF, which, it said, “has the capacity and incentives to compete” in those markets, although it did not specify an estimated value.

COFECE said that companies must accept all the conditions imposed in order to close the transaction. The pharmaceutical company has already received the required approvals from regulators at other jurisdictions, including the United States and the European Union.

Full Content: Forbes & COFECE

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.