German life sciences giant Bayer believes a change to European Union policy on gene-edited crops has the potential to reshape Europe’s €6 billion seed market and vindicate its troubled acquisition of US rival Monsanto.
After several years of negotiation, EU institutions have agreed to relax rules that in effect banned gene-edited crops in Europe. The new policy, which requires final approval from governments and the EU parliament, divides plants into two groups.
Those with edits to the plant’s own genome, rather than with DNA inserted from another species, will be exempt from strict genetically modified organism (GMO) rules. Plants of this type are already widely used in countries such as the US, Brazil and Japan. Crops with more extensive modifications remain subject to GMO rules.
The policy, which is expected to come into force in 2026, is the first major loosening of European rules on genetic modifications in agriculture. “We’ve effectively had a 30-year conflict over agricultural biotechnology in Europe – and it is finally on the way to being settled,” said Matthias Berninger, Bayer’s head of public affairs and sustainability.
In 2024, the group’s crop science division accounted for about half of its €46.6 billion of sales. In 2018, it acquired Monsanto in a $63 billion deal that aimed to turn the group into a global leader in seeds and crop science.
But the merger has been overshadowed by billions of dollars of US legal claims linked to Monsanto’s Roundup weedkiller and by European resistance to genetically modified crops.
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Bayer’s market value has more than halved since the deal, forcing it to sell businesses and cut costs.
If approved, the EU policy change will not deliver an immediate financial boost. Bayer has avoided applying for EU field trials for gene-edited crops and Europe-grown products are unlikely to reach supermarkets before the next decade.
Executives argue, however, that the change is strategically important for a group that owns among the largest plant genetic data sets in the world following the Monsanto acquisition. “Likely no other company … knows more about the genome of individual plants than Bayer,” Mr Berninger said.
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Bayer has recently sought to protect the value of its scientific patents, launching US lawsuits against several Covid-19 vaccine makers over the alleged misuse of decades-old genetic technology developed by Monsanto.
Rivals including Corteva, BASF and Syngenta have also invested heavily in gene editing, while smaller European seed breeders say the rule changes could help them compete globally.
Bayer has identified particular opportunities in modified wheat and crops edited to require less nitrogen fertiliser, which would reduce costs for farmers and European reliance on Russian supplies.
Beyond Europe, Bayer views Africa as a crucial long-term market. “If Europe and the US align on this technology, we can bring it to Africa far faster than before,” Berninger said.
The current EU GMO regulations have been criticised as slow, costly and ill-suited to technological advances. Only a handful of GMOs have been authorised, mainly for animal feed, amid persistent public and political opposition.
The shift comes as farmers around the world grapple with the effects of climate change. Drought, extreme weather and crop diseases have hit yields, while Brussels has limited the use of fertilisers and pesticides. – Copyright The Financial Times Limited 2026