Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 12 pages
Data source: Published sources
Topics:
Bayer; Monsanto; Merger; Global agribusiness segment; Environmental concerns; Customer trust; Strategic acquisitions; Genetically modified seeds; Global Antitrust Regulatory Bodies; Innovation; BASF; Monopoly in agribusiness; Agrochemicals; Pesticides and herbicides; DowDuPont; Global seed and pesticides market
Abstract
In June 2018, Bayer, a German multinational, pharmaceutical and life sciences company closed the merger deal with 117-year old US based seeds maker Monsanto for USD63 billion. According to experts, with Monsanto under its belt, Bayer would become the leading player in the global agribusiness sector, particularly in agrochemicals, genetically modified seeds, and in the crop protection segment. Bayer hoped that the merger would not only help in doubling its agribusiness but also help the company to become a leading innovator in the agribusiness sector across the world. Soon after the merger, the Monsanto brand name would be dropped. However, the acquired products would retain their own brand names under Bayer's product portfolio. Even though the merger would strengthen Bayer's position in the global agribusiness segment, it had raised several concerns on environmental grounds. Analysts had also warned that the deal might reduce competition in the agribusiness sector resulting in higher prices, lower quality, and fewer choices. Would the Bayer-Monsanto deal transform the agribusiness sector or destroy the global ecosystem?
About
Abstract
In June 2018, Bayer, a German multinational, pharmaceutical and life sciences company closed the merger deal with 117-year old US based seeds maker Monsanto for USD63 billion. According to experts, with Monsanto under its belt, Bayer would become the leading player in the global agribusiness sector, particularly in agrochemicals, genetically modified seeds, and in the crop protection segment. Bayer hoped that the merger would not only help in doubling its agribusiness but also help the company to become a leading innovator in the agribusiness sector across the world. Soon after the merger, the Monsanto brand name would be dropped. However, the acquired products would retain their own brand names under Bayer's product portfolio. Even though the merger would strengthen Bayer's position in the global agribusiness segment, it had raised several concerns on environmental grounds. Analysts had also warned that the deal might reduce competition in the agribusiness sector resulting in higher prices, lower quality, and fewer choices. Would the Bayer-Monsanto deal transform the agribusiness sector or destroy the global ecosystem?

