Shares of Monsanto (MON) jumped in morning trading after Bayer (BAYRY) agreed to sell parts of its seeds and herbicides businesses to BASF (BASFY), paving the way for the Roundup maker to be acquired by the German conglomerate for $66B.

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BAYER SELLING UNITS FOR EUR5.9B: Bayer (BAYRY) said in a statement that it has agreed to sell some of its Crop Science businesses to BASF, a German maker of chemicals and crop protection products, for EUR5.9B, or about $7B. The assets to be sold, which generated total sales of EUR1.3B in 2016, include Bayer’s global glufosinate-ammonium business and the related LibertyLink technology for herbicide tolerance, essentially all of the company’s field crop seeds businesses, as well as respective research and development capabilities. The seeds businesses being sold include the global cotton seed business, excluding India and South Africa, the North American and European canola seed businesses and the soybean seed business. The deal includes the transfer of relevant intellectual property and facilities, as well as more than 1,800 employees primarily in the U.S., Germany, Brazil, Canada and Belgium. “We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction,” Bayer Chairman Werner Baumann said. “At the same time, we are pleased that, in BASF, we have found a strong buyer for our businesses that will continue to serve the needs of growers and offer our employees long-term prospects,” Baumann added. The transaction is subject to regulatory approvals as well as the successful closing of Bayer’s acquisition of Monsanto, Bayer said. BASF said it expects the deal to close in the first quarter of 2018.

WHAT’S NOTABLE: Bayer said it would use the proceeds to partly refinance the acquisition of Monsanto. Bayer previously said it planned to raise $19B toward the deal by issuing convertible bonds and new shares and late last year finalized the syndication of a $57B bridge loan from banks to support the acquisition. The deal still faces scrutiny from antitrust regulators in the U.S. and Europe. In August, the EU opened an in-depth probe into the deal, saying it had concerns that the merger may reduce competition in areas such as pesticides, seeds and traits. The U.S. is also investigating the deal.

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