Is the Bayer-Monsanto Merger Too Big To Succeed?

Bayer, a major pharmaceutical and chemical multinational based in Germany, seeks to expand reach in agriculture and crop science. Its proposed acquisition of Monsanto is “the largest all-cash transaction in history” and a crescendo of “a string of combinations in the industry,” explains David Francis for Foreign Policy. This consolidated corporation would sell approximately one quarter of the world’s seeds and pesticides. The merger confronts roadblocks, including EU and US antitrust regulations as well as intense resistance to genetically modified organisms in Europe. In recent months, the European Commission has investigated tech companies for monopolistic tendencies in their European operations. The Bayer-Monsanto merger would also impact developing nations, where agriculture plays a large role in the economy. Farmers express concern about the potential for high input costs for seeds and low commodity prices when they sell. – YaleGlobal