Economy Jamie Simon
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Bayer, the German company active in the chemical and pharmaceutical industry, is about to take over the American company Monsanto, for 66 billion dollars.
According to the German media, Bayer increased its offer to USD 129 per share, while Reuters news agency claims that the deal will be announced on Wednesday.
The transaction would create the largest seed and pesticides in the world market leader in the Americas, Europe, and Asia, according to the BBC.
Bayer produces seeds and chemicals to control weeds and insects but is also recognized for Alka-Seltzer like antacid drugs.
Monsanto is a provider of genetically modified seed corn, soybeans, cotton, wheat and sugarcane, which drew criticism from environmental activists.
On September 5th, Bayer has offered USD 127.50 per share. Monsanto rejected the offer but argued that it is engaged in “constructive talks” with the German company.
The latest offer of 66 billion dollars, which would be the largest acquisition in cash registered, comes amid several mergers in the agricultural sector. Rivals such as Dow Chemical, DuPont, and Syngenta recently announced joint, although some still need to be clarified by supervisors.
Most farmers do not support these mergers, which could lead to fewer choices and higher prices, writes the quoted website.
Monsanto takeover by Bayer would attract a careful research of anti-trust bodies, because of the size of the company and the control that it would have on markets like the seed one.
Monsanto began buying seed companies in the 1990s and later became a giant in the vegetable seed industry with the acquisition of Seminis, the largest vegetable seed company in the world in 2005. Today, Monsanto seed is occupying 23% of the market worldwide.
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