Fair trade regulator CCI has agreed on the acquisition of US-based biotech major Monsanto by German chemical and pharma major Bayer AG. Bayer is buying out Monsanto in a $66 billion deal. Mergers and acquisitions beyond a certain threshold require the approval of the CCI.
In a tweet, the Competition Commission of India (CCI) said it has approved acquisition of Monsanto by Bayer AG, subject to compliance of certain modifications.
Earlier in January, CCI had launched a public consultation process to determine whether the billion-dollar merger deal between Bayer and Monsanto, to create the worlds largest seeds and pesticide firm will have any adverse impact on competition in India.
Bayer group is present in India since 1896 and it has two divisions - crop science and pharmaceuticals. Monsanto would add seed business to Bayer's already significant crop science and pharmaceutical business in India. Both the companies have a presence in India, with the US firm selling genetically modified (GM) cotton seeds in the country for more than a decade and in production and sale of vegetable seeds, and sale of non-selective herbicides.