The European Commission is expressing concern over a potential monopoly in the pesticide and seeds market, which is igniting an investigation into Bayer’s plans to buy Monsanto for $66 billion.
If the deal goes through, the Commission says it would be the world’s largest integrated pesticides and seeds company, limiting competitors in Europe and possibly leading to higher prices.
Considering the scope of the merger, Bayer said in a statement a more thorough investigation was expected.
“The Commission has preliminary concerns that the proposed acquisition could reduce competition in a number of different markets resulting in higher prices, lower quality, less choice and less innovation,” said Bayer in a statement Tuesday.
In a separate statement, Monsanto said the companies remain committed to working with regulators to receive approval by the end of the year.
It’s been roughly one year since Bayer made its first offer to Monsanto. At the time, Monsanto rejected the $55 billion bid, calling it “inadequate.”