German-based Bayer has cleared the main remaining competition hurdle in its bid to take over US rival Monsanto and form the world's largest seed and agri-chemicals company.

The US Department of Justice announced this Tuesday that it would allow the deal on the condition that Bayer sells some of its business units to BASF. "These include Bayer’s cotton, canola, soya bean and vegetable seed businesses, as well as Bayer’s Liberty herbicide business, a key competitor of Monsanto’s well-known Roundup herbicide," a Department statement said.

'Close to goal'

This is a similar requirement to that imposed by the European Commission when giving its conditional green light to the merger earlier this year. The businesses to be sold by Bayer are worth $9bn, described by Assistant Attorney General Makan Delrahim of the US Antitrust Division as "the largest merger divestiture ever required by the United States". Bayer expects this to be completed within two months.

Bayer chief executive Werner Baumann said the US decision brings his company "close to our goal of creating a leading company in agriculture". Applications to competition authorities are pending in Canada and Mexico, according to Reuters.

Bayer confirms $65bn takeover of Monsanto

€54bn Monsanto-Bayer merger gets US clearance

After receiving the green light from EU authorities in March, Bayer has received approval from the US competition watchdog to acquire Monsanto subject to similar conditions.