UPDATE 2-Brazil agency urges conditions for approving Bayer-Monsanto tie-up

(Adds information on suggested steps, context, paragraphs 7-10)

SAO PAULO, Oct 4 (Reuters) - A unit of Brazil's competition regulator Cade said the $66 billion takeover of Monsanto Co. by German life sciences firm Bayer AG could be detrimental to competition, a document released on the agency's website shows.

The Bayer-Monsanto transaction, announced in September 2016, would create the world's largest integrated pesticides and seeds company.

The Cade unit said that anticipated merger-related efficiencies were insufficient to mitigate its competition concerns, according to the document dated Oct. 3.

It recommended what it termed as "structural solutions" as a condition for final approval the deal, which will be in the hands of Cade's seven-member tribunal.

The Cade unit said it had not engaged in an in-depth discussion with Bayer and Monsanto related to its suggested "remedies."

In an emailed statement to Reuters, Bayer said the unit's opinion is non-binding and does not mean the transaction will be blocked. Monsanto did not immediately reply to a request for comment.

The unit said solutions included creating or strengthening another player to compete in the markets for soy and cotton seeds and in the sphere of biotech development.

Deal opponents have asked Cade to block it or force divestments including Monsanto's Intacta RR2 IPRO soy seed technology and Bayer's glufosinate ammonium herbicides.

Last week, Monsanto Co's chief executive officer for South America told Reuters the company was set on keeping rights to Intacta. Cotton farmers against the transaction assert the merged company would control 14 out of 15 genetically modified cotton seed technologies available in Brazil. (Reporting by Ana Mano; editing by Alexander Smith and W Simon)