WASHINGTON—The Justice Department has decided to allow Bayer AG’s megadeal to acquire Monsanto Co. , valued at more than $60 billion, after the companies pledged to sell off additional assets to secure government antitrust approval, according to people familiar with the matter.

An agreement in principle between the companies and the department, brokered in recent days, marked a breakthrough in the U.S. merger review process, which had remained in limbo because of Justice Department concerns about the deal.

Monsanto shares rose more than 6% in recent trading after The Wall Street Journal reported on the Justice Department’s decision.

Bayer Chief Executive Werner Baumann and Monsanto CEO Hugh Grant recently met with Justice officials in Washington to help secure an agreement, people familiar with the matter said.

The Bayer deal presented the Justice Department with its second major merger decision under Trump administration leadership, following its move last November to challenge AT&T Inc.’s acquisition of Time Warner Inc., a case that is currently in trial.