The European Union's antitrust agency this week says it will conduct a strict review of Bayer AG's proposed $62 billion purchase of Monsanto and similar mergers by rivals. Dow Jones reports the comments are unusually early and come before the EU has received formal notification of a deal. In a letter to the European Parliament, an antitrust official told lawmakers “our final decision must strictly and impartially apply European merger control rules.” In a review of a potential deal, the EU will consider the impact of a merger on prices, the variety of available seed products along with research and innovation. The European Commission has the power to block deals or demand the parties submit remedies, such as divesting assets, to ease any competition concerns. Monsanto said this week the company is still in discussions with Bayer and other companies regarding "alternative strategic options,” while also announcing lower-than-expected sales for the sixth straight quarter. Monsanto rejected the initial proposal by Bayer earlier this year.
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