When I hear the name Bayer, I think of the aspirin bottle that’s been in my parents medicine cabinet forever. However, it seems that the German company also has sizable CropScience division that produces seeds, pesticides, and other agricultural products and they just may be in the market to become the world’s largest player in this field- if they acquire Monsanto.
While there is currently no deal on the table, Bayer has discussed how it could finance the purchase of the Missouri-based seed company. They could also just end up creating a new joint venture with Monsanto. Both of those ideas sound terrifying.
Last year, Monsanto attempted to buy Syngenta. That sale would have given the combined company control of 40% of the U.S. pesticide market. But, Syngenta hesitated and later agreed to sell itself to the China National Chemical Corp., for $43 billion dollars.
Bloomberg believes that if Bayer does move forward with an offer to Monsanto, it’s likely that BASF, a German company, might also hop into the purchasing ring and try to outbid Bayer.
We will continue to watch this merger closely. The idea of a drug company and chemical seed company being one is a synergy we don’t want to see.
Source: Bloomberg and Consumerist
