The Justice Department Is Going to Let Bayer Buy Monsanto. Here's Why It Matters

Authorization (some conditional) is the last major obstacle to transactions started in May 2016. It was approved by the European Union in March and a "fruitful" conference between Bayer and President Trump was approved in January. This is the largest total cash acquisition ever recorded and is the largest deal made by a German company so far.

However, not everyone is the key to this problem, it allows the company to manage more than a quarter of the world's seeds and pesticides.

In May 2016, Bayer took the initiative to acquire Monsanto for $ 122 per share (about $ 66 billion). Bayer is a German pharmaceutical and chemical manufacturer. Monsanto is a leading agriculture headquartered in St. Louis, Missouri. Together they form the cornerstone of data driven industrial agriculture and the company believes it is necessary to feed this to 10 billion planets. Bayer CEO Werner Baumann and Monsanto Chairman and CEO Hue Grant stressed that the company has invested more in innovation and has invested $ 16 billion in research and development within six years. However, Business Insider notes that it is only $ 500 million of its current R & D expenditure.

Such large-scale cooperation inevitably causes antitrust problems. Bayer and Monsanto both appear to play a role in different fields, but there are several intersections between those products. In order to meet the requirements of the Ministry of Justice, Bayer intends to sell a portion of its assets to German competitor BASF before the merger. These include the company's soybean and cottonseed business and glufosinate herbicide, a direct competitor of Roundup, the central element of Monsanto's business.

Rumors about Bowman and Grant's innovation and feeding around the world are concerned that for many farmers this merger is only profitable and it is easier to achieve after the merger. Agriculture analyst Mark Connelly told Business Insider that "These companies want to raise more revenue and increase prices, companies in this industry do not need these transactions for innovation "I tell you. There is a positive correlation between market share and seed price. Market share is also an indicator of yield, but revenues are declining rapidly. Once this model is established, farmers may spend more money to earn more income.

If farmers' concern is realized, consumers will see not only the price of agricultural products rising but also the countless products like natural gas hiding corn and soybean ingredients. The Bayer-Mengshandu deal is sufficient to attract people's attention. Even more concerned after the acquisition of ChemChina-Syngenta and the merger of Dow Chemical and DuPont

The next responsible person of the Ministry of Justice's Antitrust Act will contribute to judging the fate of the merger, including AT & T and Time Warner, plans to acquire Monsanto by Bayer. De Lahim revealed that he supports large multinational corporations and provides more power to them. He does not represent a new step of the Democratic Party in the fight against corporate power, nor does it represent a wrong assertion of playing cards against corporate mergers. There is no incentive for huge international companies to press down the wages of workers, trampling locals and small producers, and offering high quality products and services. They also buy our democracy to make it fit them - just look at the banks that are too big for Wall Street to fail. We need an antitrust police that actively enforces the law, prevents the merger, and is devoted to breaking the giant.

In May 2016, Bayer took the initiative to acquire Monsanto for $ 122 per share (about $ 66 billion). Bayer is a German pharmaceutical and chemical manufacturer. Monsanto is a leading agriculture headquartered in St. Louis, Missouri. These together form a vertex of data-driven industrial agriculture. The company believes it is necessary to supply this to 10 billion planets. Bayer CEO Werner Baumann and Monsanto Chairman and CEO Hue Grant stressed that the company has invested more in innovation and has invested $ 16 billion in research and development within six years. However, Business Insider notes that it is only $ 500 million of its current R & D expenditure.