German drug and crop chemicals maker Bayer is set to win conditional European Union competition approval for its $62.5 billion bid for the world's biggest seed company Monsanto.
This is according to two people familiar with the matter.
The takeover, one of a trio of major deals in the agribusiness sector in recent years, would create a company with a share of more than a quarter of the world's seed and pesticides market.
Shifting weather patterns, competition in grain exports and a souring global farm economy have spurred consolidation among the major players.
The proposed deal has triggered protests from environmental and farming groups worried about their market power.
Bayer has already pledged to sell certain seed and herbicide assets for €5.9 billion to BASF to address EU regulatory concerns.
The company will also give BASF a licence to its digital farming data, and it appears BASF will have exclusive access as Bayer has not offered a legal obligation to license to other rivals, a person with knowledge of the matter has told Reuters.
Earlier today, Bayer said additional competition concessions would include the sale of its vegetable seeds business, confirming a Reuters report.
The European Commission, which is expected to issue a decision on the deal ahead of its April 5 deadline, declined to comment.
Bayer also declined to comment on the sources' comments, saying it continued a constructive dialogue with the EU competition watchdog.
It added the regulatory process in Europe was further advanced than in the US where the deal also requires clearance.
French seeds producer Vilmorin said it would consider taking over some vegetable seed activities put up for sale by Bayer.
The Bayer-Monsanto tie-up has sparked criticism from environmentalists and some farming groups concerned about its market power and first mover advantage in digital farming data.
Some who met this week with European Competition Commissioner Margrethe Vestager, who has received more than 50,000 petition emails and more than 5,000 letters opposed to the deal, were not reassured.
