Bayer Deal for Monsanto Follows Agribusiness Trend, Raising Worries for Farmers
The market seemed to anticipate hurdles for the Monsanto deal on Wednesday. Shares of the company closed about 20 percent lower than the $128 per share cash offer from Bayer, which is based in Leverkusen, Germany. Shares of each company gained less than 1 percent after the deal was announced.
The author of the Motherboard article Kaleigh Rogers, writes that we need to be concerned because “The $66 billion merger is the largest this year, and means Bayer now controls more than a quarter of all seeds and pesticides on the planet, according to the BBC.” well yes, that is true but unfortuanlty because of all the regulation and testing required to bring both GMOs and other agricultural products to market it’s created a situation where the only companies that can really compete in the market require huge capitalization.It is a conundrum, a “damned if we do damed if we don’t” situation.
Bayer Just Bought Monsanto, Here’s Why You Should Care
A giant company just bought another giant company, but if you’re not an investor or a farmer, you may not have noticed. Bayer-the aspirin company that also makes farm products like pesticides- announced on Wednesday it was merging with Monsanto, the massive genetically-modified seed producer that owns about a third of the seed market in the US.