The US Justice Department will allow German drugs and pesticides group Bayer to acquire Monsanto in a $62.5 billion deal, according to US media reports.
The approval will be granted after the companies agreed to sell more assets to win competition approval, the Wall Street Journal has reported.
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.
A souring global farm economy has spurred consolidation among the major players, triggering protests from environmental and farming groups worried about their market power.
The US Justice Department reached an agreement in principle with Bayer and Monsanto in recent days, the Journal said, citing people familiar with the matter.
Under the deal, Bayer agreed to sell additional seed and treatment assets to BASF and agreed to make concessions related to digital agriculture, the Journal said.
Bayer declined comment on the report, but said in a statement it anticipated closing the Monsanto purchase in the second quarter.
A spokeswoman for BASF could not immediately be reached for comment. Monsanto and the Justice Department declined to comment.
Last week, Monsanto said in a quarterly earnings report that it was confident the US and other needed regulatory approvals would be secured within the second quarter.
Monsanto did not host its usual conference call with analysts to discuss the earnings because of the pending merger.
The Department of Justice said last month that it was still reviewing the deal and noted that genetically modified seeds are largely prohibited in Europe but widely used throughout the US.
European Union competition regulators approved the deal in March after the companies agreed to sell a swathe of assets to BASF. China, Brazil and Australia have also approved the proposed merger.
The deal was preceded by a merger of Dow and Dupont and a tie-up of ChemChina and Syngenta.
