The European Commission’s competition authority has opened an in-depth investigation into Bayer’s proposed $66bn (€56bn) takeover of US seed and chemical giant Monsanto. The Commission said it aims to assess if the merger will reduce competition in areas such as pesticides, seeds and seed traits.

“Seeds and pesticide products are essential for farmers and, ultimately, consumers. We need to ensure effective competition so that farmers can have access to innovative products, better quality and also purchase products at competitive prices,” said Margrethe Vestager, the European Commissioner for Competition.

It is almost a year since Bayer and Monsanto agreed a $66bn deal that would see Bayer pay $128/share to acquire Monsanto’s entire business, including debt. This proposed deal would be the largest all-cash bid on record, creating the world’s largest seed and chemical company with a 25% share of the market in both sectors.

The Bayer-Monsanto tie-up is part of a wider trend within the agri-chemical and seed industry following a host of high-profile deals in the last year. Dow and DuPont recently completed a $130bn merger, while the state-owned Chinese conglomerate ChemChina also completed a $43bn takeover of the Swiss seed and chemical giant Syngenta.