Bayer + Monsanto = global agro leader?

Bayer + Monsanto

According to press-release of Bayer, Monsanto was offered to sell its shares at $122 each (total deal is estimated at $62 bln). The deal considerable changes the balance of power on the global agro market and that’s why caused a lot of responses.

Both companies are not simply engaged in agriculture, but actively promote chemical technologies for land cultivation together with genetically modified products. According to IHS Chemicals expert, merge of Monsanto – seed producer – will logically round out crop protection chemicals of Bayer. «Gaucho’s Roundup» – this is the name of Rob Westervelt’s article. Roundup is herbicide of Monsanto, whose influence on ground means destroy of any growing and alive there. Gaucho – seed treatment before sowing, insecticide of Bayer.

Will Monsanto accept the proposal – there is a serious doubts. Thus, experts told Bloomberg, that the company will wait for better amount and can take about $146 per share.

Meanwile, using another reason, in 40 countries of the world about 3’000 ecologists demonstrate to show «ecocide» of Monsanto. In spite of seeds’ certification provided by regulatory authorities (IARC), the society is sure the products cause cancer.

Formation of the enlarged alliance will force its market position and will encourage promotion of chemical decisions in agriculture.

Sources: Bayer, ITAR-TASS, IHS, Vedomosti, Forbes, Independent.