Comesa gives nod to Monsanto buyout by Bayer

Date:07-05-2017

Common Market for Eastern and Southern Africa (Comesa) competition wing has cleared the acquisition of Monsanto Company by Bayer in a move set to bring ownership changes in the local unit where businessman Chris Kirubi is a significant shareholder.

Comesa Competition Commission (CCC) says it approved the merger after finding that it was not likely to lessen competition in the region.

Mr Kirubi owns a 45 per cent stake in Bayer East Africa, which is a subsidiary of the Germany-based Bayer Group.

“We determined that the merger is not likely to substantially lessen competition in the common market or negatively affect trade between member states. We therefore approved the transaction,” Comesa said in a statement.

CCC received notification in relation to acquisition of Monsanto Company by Bayer at an estimated cost of Sh6.2 trillion cash deal that includes the takeover of the former’s Kenyan subsidiary.

The Competition Authority of Kenya (CAK) approved the buyout of Monsanto Kenya by Bayer’s investment vehicle Bayer Aktiengesellscharl KWA Investment Company two weeks ago through a gazette notice.

Mosanto Kenya is a leading supplier of hybrid seed brands in large-acre crops like maize, cotton, and oilseeds (soybeans and canola), as well as small-acre crops like vegetables.