The BAYER-Monsanto Merger: creating a global leader in Agriculture

Bayer and Monsanto have just announced that they signed a final agreement under which Bayer will buy Monsanto for USD 128 per share in an all-cash transaction. How this negotiation is happening and what are the implications?

  1. Concentration In Agriculture Sector And The Bayer-Monsanto Merger
    Concentration In Agriculture Sector And The Bayer-Monsanto Merger
  2. Bayer-Monsanto could be one of the most dramatic and troubling mergers which have ever happened on earth. Indeed, BAYER is a major producer of aspirin and Monsanto a massive producer of genetically modified organisms or GMOs, In fact, both are leaders in agriculture technologies, and they are also both path breakers in the advanced chemistry of crop protection products, such as pesticides and other herbicides, and of course the genetic engineering of seeds made to be combined with those products.
  3. The European Presidents struggling
  4. Who made Merkel the leader of the EU? A Germany environmental company informed us that 79% of the insect population had been wiped out because of pestersides, now she's allowed Bayer and Monsanto to continue to poison the environment and kill the remaining insects!.....
  5. Of course, Emmanuel Macron, Angela Merkel and Donald Trump are all arguing that they don't know what happened and how. They will take their own defence saying that if the CFIUS, which is the Committee on Foreign Investment in the United States, wouldn't have validated the merger, nothing would have happened. What these presidents don't know is that the combined companies will have leading innovation abilities and R&D technologies platforms to create absolutely what they want and so create more genetical modified organisms in order to make more profits and more quantity, and of course to spread more cancers and dangerous diseases, and kill the remaining insects on earth. CFIUS agreed to the merger because according to them there are no national security concerns with the deal
  6. Now that this merger is happening, only three major companies will remain in this space, even if there is a sell-off of some assets. So "Baysanto" as some are already calling the new merger, would be massively dominant on the market. This dominance will involve diminishing competition, allowing the brand new dominant firm to engage a predatory buying of all farms all around the world and other actions that will harm consumers. Indeed, now independent farms which are using Glyphosate without buying their seeds to "Baysanto", will be randomly tested throughout samples of their lands. If they are using technologies like Glyphosate without paying anything to Bayer and Monsanto their farms will be sued by "Baysanto" and will probably close.

  7. The consequences
  8. To illustrate those statements some figures are important to remind:
  9. The new entity created by this acquisition is going to hold one-third of the seed market. It means that they will soon be able to establish the prices they want concerning seeds.
  10. This new entity will also become the global leader seller of herbicides and pesticides, so it involves that they will also be able to establish the prices in this field too.

  11. Even if the acquisition is already in a good way, and the opposition seems to have lost their fight to prevent this merger to happen, there is still a small hope to reduce their future monopoly. Indeed, the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals. In other words, both companies will continue to cooperate with the authorities in order to complete their transaction because they have to. Unfortunately, Monsanto received some really good news this week, indeed the European Commission went ahead and granted Glyphosate another five-year registration for use, but refused the proposal of 15-year reregristration basically desired by the company. So Europe keeps that crop protection on the market for a few years more.

  12. Vocabulary to help
  13. A little bit of vocabulary to help The Circular readers to understand better this article.
  14. Glyphosate: is a herbicide and crop desiccant sold by Monsanto. It is used to kill weeds and grasses that compete with crops. Of course, scientists have demonstrated that the impact on human is really harmful, it can cause cancers and dangerous diseases
  15. Glufosinate; is also a powerful chemical herbicide. Application of glufosinate to plants leads to decrease glutamine and raise ammonia levels in tissues, changing the natural photosynthesis, resulting in plant death.

  16. Dangers of the Proposed Bayer-Monsanto Merger
  17. For further information about the merger that is going to happen, The Circular advice you to watch this short documentary on the dangers of the merger.