The proposed merger of German pharmaceutical manufacturer Bayer and American pesticide and seed corporation Monsanto has raised global concerns among activists concerned about monopoly power over food security and human health.
US Senators representing mid-western farmers have promised to scrutinize the deal which some financial commentators have said will fail, netting a windfall for Monsanto.
There is little overlap in the companies’ products and so it is unlikely to be stopped by anti-monopoly laws.
Bayer-Monsanto Merger Is ‘a Disaster for Global Food System
This is extremely bad news for farmers and consumers across the globe. “We already know that these agri-businesses use aggressive techniques to further their market share and increase profit margins and do not act in the best interests of small-scale farmers, public health or the environment.” The merger will create a company that will command more than a quarter of the combined world market for seeds and pesticides.
People aren’t thinking straight about Monsanto – Bloomberg
Critics who dislike Monsanto for its leading role in developing genetically modified organisms and agricultural chemicals shouldn’t also be citing monopoly concerns as a reason to oppose the merger — that combination of views doesn’t make sense. Let’s say for instance that the deal raised the price of GMOs due to monopoly power. Farmers would respond by using those seeds less, and presumably that should be welcome news to GMO opponents.
http://seekingalpha.com/article/4006879-monsanto-bayers-acquisition-will-fail-monsanto-will-receive-2-billion
Bayer-Monsanto Merger Is ‘a Disaster for Global Food System
This is extremely bad news for farmers and consumers across the globe. “We already know that these agri-businesses use aggressive techniques to further their market share and increase profit margins and do not act in the best interests of small-scale farmers, public health or the environment.” The merger will create a company that will command more than a quarter of the combined world market for seeds and pesticides.
People aren’t thinking straight about Monsanto – Bloomberg
Critics who dislike Monsanto for its leading role in developing genetically modified organisms and agricultural chemicals shouldn’t also be citing monopoly concerns as a reason to oppose the merger — that combination of views doesn’t make sense. Let’s say for instance that the deal raised the price of GMOs due to monopoly power. Farmers would respond by using those seeds less, and presumably that should be welcome news to GMO opponents.
The Senate is taking a closer look at a proposed $66 billion merger of American seed and weed-killer company Monsanto and German medicine and farm chemical maker Bayer.
The deal combines two of the six U.S. and European companies that dominate the agrochemical market, and would create a global agricultural and chemical giant with a broad array of products. The Senate Judiciary Committee chairman, Republican Sen. Charles Grassley of Iowa, has said he’s concerned that the consolidation could hurt American farmers who are already worried about rising costs.