LEVERKUSEN, GER & ST. LOUIS, MO - According to a new report this week from Reuters, sources close to the deal believe that Bayer and Monsanto may be selling close to $2.5 billion dollars in assets in order to gain approval from federal regulators for the companies’ proposed $66 billion merger.

Since agreeing to merge in mid-September of 2016, both companies have made clear that they are willing to divest in order to gain regulatory approval. Reuters sources have revealed that Bayer’s advisors plan to deliver information packages to prospective bidders for the businesses as early as next week. 

"This represents a major step forward for our Crop Science business and reinforces Bayer’s leadership position as a global innovation driven Life Science company with leadership positions in its core segments, delivering substantial value to shareholders, our customers, employees, and society at large," shared Werner Baumann, CEO of Bayer AG, upon both companies agreeing to the initial merger terms. 

The sources were unable to reveal what businesses, if any, will be put up for sale, but Reuters confirmed that many antitrust and industry experts have been eyeing Bayer’s soybean, cotton, and canola seed assets, as well as LibertyLink-branded crops, as potential choices for divestment.

The people familiar with the matter shared that the assets will also likely be shopped to large private equity groups. However, Reuters warned this may limit competitive bids against other players in the agricultural supplies market. 

The deal, should it be approved by regulators, is aimed to close at the end of 2017.

Bayer and Monsanto have yet to issue official statements, but AndNowUKnow will continue to update you as more information is revealed.

Bayer Monsanto