“Bayer has filed a lawsuit against the FAS of the transaction on the merger with Monsanto

According to the FAS, the company has said it is ready to make a deal on the territory of Russia

Photo: Reuters

– Bayer has filed a lawsuit against the Federal Antimonopoly service of the Russian Federation for transactions with Monsanto, said the head of FAS Igor Artemyev.

Economy08 Nov 2017ФАС proposed conditions of approval record of the transaction between Bayer and MonsantoЧитать read more

“We just filed the largest German company Bayer, which merges with Monsanto company,” said Artemyev, speaking at a meeting with deputies of “United Russia” in the Duma.

“We demand from them in exchange for the agreement of an Antimonopoly organ transfer a significant part of the technologies for our agricultural industry, because they have such big data, what if they run United, we have from agriculture, little will remain,” he said.

“This is our first trial with them. They filed a (lawsuit – if) last week and said that they’re ready for this deal not to commit on the territory of Russia, actually leave here,” said the head of FAS.

In turn, Bayer later said Tuesday that the claim by the FAS does not preclude the approval conditions for the deal with Monsanto.

“Bayer has exercised its right to appeal the order and went to court. This step is procedural in nature and will not affect the possibility of negotiating a mutually beneficial agreement with the aim of supporting further innovative development of Russian agriculture”, – said “Interfax” the press-service of the company.

According to the filing of arbitration cases, the claim Bayer to FAS was registered on 8 Feb. The company is seeking recognition of the “decisions and actions (inaction) unlawful.” Third parties in the proceedings are CJSC “Monsanto”, Monsanto International, LLC “Monsanto Rus”.

The claim will be considered in the Arbitration court of Moscow. “We hope to win in this court, as we beat Google, Apple, and others, because we found some not very standard solution,” – said Artemyev.

Approval of the transactions

In November 2017, the FAS announced that it is to agree on a deal Bayer – Monsanto in the case that Bayer will fulfill the behavioral requirements, including the transfer of technologies in the field of plant breeding. The term of consideration of application of the German Bayer AG to purchase 100% stake in the U.S. Monsanto has been extended by three months.

The Agency came to the conclusion that the deal could create significant risks for competition on the Russian market, which should be excluded at the stage of its approval. The transaction concerns the markets for seeds, plant protection means, in particular, non-selective herbicides, as well as digital offerings for farmers. Behavioral requirements for the approval of the transaction include the transfer of technologies in the field of selection, necessary to create new varieties and hybrids, applicable in the Russian agro-climatic conditions, on the basis of non-exclusive licenses, as well as access to databases in the field of digital agriculture Russian companies.

In January Artemyev had a meeting with the leadership of Bayer, the parties expressed readiness to continue negotiations “on all disputable issues to reach a mutually acceptable solution”, said the FAS.

Deputy head FAS Andrey Tsyganov has also been positive: the Antimonopoly service continues to discuss with Bayer the details of the transfer of technologies and expects that the process will be completed as scheduled. “The time we have, the deal is seen not only in Russia, it is regarded in many foreign jurisdictions, virtually all large, and the USA, and the EU, China, India, and Brazil. Decisions in those jurisdictions have not yet been adopted. In fact, it seems to me that the global closure of this transaction can occur in the spring, but not in the beginning. I think in those terms that we have outlined, we will complete this process”, – he said in an interview to “Interfax” at the end of January.

Bayer and Monsanto in September 2016 signed a definitive agreement to merge. The transaction value – $66 billion ($128 per share of Monsanto). Bayer will Finance the acquisition through equity and Bank funds.

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