What happens when you marry a drug company with a pesticide company?
We’re about to find out.
The U.S. Department of Justice (DOJ) this week approved the $66-billion acquisition of Monsanto by Germany-based Bayer—so much for making America great again.
The big shots at Monsanto and Bayer spewed the usual nonsense about how all they care about is helping farmers and feeding the world. But Mark Connelly, an agriculture analyst at the brokerage and investment group CLSA Americas, told Business Insider:
“Let’s just cut to the chase: These companies want to make more money, they want to raise prices. No company in this industry needs these deals in order to innovate.”
What does the mega-merger mean for consumers? Fortune, which is not exactly anti-big deals, wrote:
. . . consumers could see prices go up not only on agricultural products, but also on the umpteen products that hide corn and soybean inputs such as gas. The Bayer-Monsanto deal is big enough on its own to create cause for concern. It’s even more worrying in the wake of the ChemChina-Syngenta takeover and Dow Chemical’s merger with DuPont.