Daily News Archive
From December 05, 2001
Bayer's Purchase of Aventis, Creating Second Largest Agrochemical Company
in the World
The CBG Coalition, a German based Bayer watchdog group, reports that the European Commission will be conducting an investigation of Bayer's proposal to purchase Aventis Cropscience (ACS), thus making Bayer the second largest maker of agrochemicals in the world. Despite the Commission's investigation, Bayer expects to complete the $6.5 billion purchase of its rival, ACS, by the end of the first quarter.
The Commission is quoted as saying that they have "concerns that competition may be significantly reduced in the fields of insecticides, herbicides, fungicides and seed treatment products for the agriculture sector" and chemicals used to control ticks and fleas on dogs and cats.
The investigation is expected to last four months, at which time the Commission will either approve the transaction without conditions or find that it harms competition and thus require changes or reject the proposal entirely.
Syngenta, an Anglo-Swiss company, will remain the world's largest agrochemicals manufacturer in the world.