Bayer-Monsanto merger about to happen
by Editor (comments: 0)
Last month was marked by Monsanto’s merger with Bayer, two superpowers in the pesticide market. Bayer, mostly known for selling Aspirin throughout the world, would acquire 28% of the world’s pesticide market with Monsanto, the American multinational agrochemical and agricultural biotechnology corporation. On 24 September, the board of Monsanto agreed to accept the offer of Bayer to purchase Monsanto for $66 billion pending regulatory approval.
The outcome will depend on the European Commission’s decision in Brussels. As quoted on Deutsche Welle, Jan Pehrke from the German non-governmental organization, Coalition Against Bayer-Dangers, says a rejection is highly unlikely: “I think we can't stop the merger at this point, it's done”.
The pre-eminent position Bayer would get with the new $66 billion acquisition is worrying to environmental groups. Not only environmental groups but competition regulators will also examine whether the size of the combined company after the acquisition is a cause for alarm or or not.
Experts act with the assumption that Bayer will be forced to sell some of its market, like their cotton business or parts of their pesticide business, since it would grow exponentially, but without cancelling the deal with Monsanto.
Observers believe Bayer might drop the name Monsanto, since the American brand has been under a lot of negative scrutiny. For the last four years anti-Monsanto protesters have gathered around the world for their “March Against Monsanto”. Bayer Chief Executive Werner Baumann had said: “Suffice to say that Bayer enjoys an excellent reputation and appeal worldwide. We must take advantage of that.”
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