The Department of Justice on Monday reached an “agreement in principle” for German-based Bayer to purchase Monsanto.
The approval comes after the companies announced plans to sell more of their assets, roughly 25%. Bayer plans to sell seed and treatment assets to BASF.
Shares for both companies rose after the Department’s announcement. Bayer climbed four-point-seven percent, while Monsanto jumped six-point-two percent.
This acquisition is just one of three major company sales in the agriculture industry, creating a company that will control more than one-fourth of the seed and pesticide markets. Several agricultural groups have protested the sale, saying it will reduce needed competition in the marketplace and lead to higher prices for producers.
Bayer, Monsanto and BASF all declined to comment on sale completion. However, Reuters reports Bayer hopes to have the sale completed by the end of the second quarter.