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Competition record

Monsanto

Deep profile · 1 linked library matter

Monsanto was the seed and herbicide company behind Roundup and a large portfolio of crop seeds. The European Commission cleared Bayer's acquisition in June 2018 only after seeds, traits, glufosinate, and digital agriculture assets were divested to BASF.

Overview

Monsanto sold crop seed and the chemicals farmers spray on those crops. Roundup, its glyphosate herbicide, was the famous brand. The seed business mattered just as much: varieties and genetic traits, including traits that let a crop survive a particular weedkiller. Farmers often buy the seed and the chemical as a pair.

Bayer agreed to acquire Monsanto. The European Commission gave a conditional clearance in June 2018. Conditional means the deal could proceed only if overlapping businesses were sold. The package that went to BASF covered seeds, traits, the glufosinate herbicide business, and digital agriculture assets, the data and software tools sold alongside seed.

The library records the outcome as a remedy, those divestitures, rather than a block. This profile is Monsanto as the acquired seed and herbicide company. It does not relitigate later litigation about the herbicide's safety. The competition question in this file is who would still sell rival seed, traits, and weedkiller after the combination.

Competition footprint

Seed, traits, and herbicide overlap was the reason a clearance had conditions attached.

Glufosinate was carved out as its own herbicide business and sold to BASF with the seed and trait assets.

Digital agriculture assets were part of the same remedy, so the data tools did not all stay with the merged company.

Consumer & business angle

A farmer choosing seed for a season is also choosing a spray program and, increasingly, a software layer that recommends both.

BASF, as the buyer of the divested assets, was the rival the Commission relied on to keep a second source in the market.

What to watch

  • Whether the BASF businesses that came out of the remedy still compete in the seed and herbicide lines that were divested.
  • How later crop-science deals are measured against the June 2018 conditions.

Markets

crop seeds · herbicides · agricultural traits · agricultural biotechnology

Also known as: monsanto company, roundup

Conduct themes

merger