Pesticide and pharmaceutical giant Bayer announced that it would be acquiring seed giant Monsanto. Now you would think this would make MAM howling mad. You would think that. Instead, they are cheering it and counting it as a victory.
Obviously, we should take a brief pause to celebrate our efforts. One has to assume Monsanto, one of the most powerful corporations in the world, probably wouldn’t have curled up and allowed themselves to be gobbled up by Bayer if it weren’t for the amazing efforts of millions of people all over the globe.
What part of consolidation don’t these dipshits understand? While still not commanding a monopoly of the market, they will control sales of 29 percent of the world’s seeds and 24 percent of its pesticides. It will create the largest agribusiness in the world. Let me repeat that…. Bayer’s acquisition of Monsanto will create the largest agribusiness in the world. So yeah MAM! Pat yourselves on the back for your victory.
Monsanto held firm on an earlier offer, but Bayer kept upping the ante until Monsanto couldn’t say no. The $66 billion deal (I believe the actual number is $66.6 billion) is all cash. Since Bayer kept upping the ante and wound up paying about $22/share more than Monsanto’s current price, how toxic can they be?
The most surprising aspect of the merger is the fact that Bayer would be willing to take on the global disdain that many hold for Monsanto.
Sure, if it makes them money you idiots. Why would a company pay $66 billion for a company whose annual profits hover around $15 billion? The Wall Street Journal reports
Bayer plans to pay $128 a share for Monsanto in an all-cash transaction, up from its latest offer last week of $127.50 a share, the companies said. The price represents a roughly 5% increase over Bayer’s original offer in May of $122 a share. Including debt, the deal is valued at about $66 billion.
Oh, and check out this idiocy
We have exposed their corruption, we have made them lose millions, we have been the reason a 1/3 of their workforce has been laid off and we are the reason the word “Monsanto” is the equivalent to “toxic poison” for much of the world.
They’ve gone from totally nuts to totally delusional. These fuckers live in their own world. I don’t think they have any concept how the real world works.
Tensions have escalated further because global crop prices have fallen for three straight years, squeezing profits and forcing the seed and agriculture industries to cut costs and trim their workforces. Monsanto said last year it would lay off 12 percent of its employees, or 2,600 jobs.*
They are also cheering 2,600 people losing their jobs? These people are vile.
Now the most evil company in Europe has absorbed the most evil company in America. Monsanto and Bayer’s new corporate motto should be ‘Killing bees and butterflies for fun and profit.’
And Murphy’s motto should be, “Being an idiot for a living.”
Murphy’s take is more in line with most anti sentiment. Ronnie Cummins, the anti-vax head knucklehead over at the Organic Consumers Association also weighed in. He said something like, “BIG POISON! BIG POISON! Arrgghhh” as he scratched at his measles.
That said, the deal is not a done deal. According to the WSJ, they still have a lot of regulatory hurdles to get through in the U.S. and the Europe.
The deal is likely to warrant intense scrutiny from American and German antitrust regulators, who will assess whether the merger would unfairly lead to higher prices for farmers worldwide. The new company would preside over roughly a quarter of the world’s seed and pesticide supplies.
Regulatory crackdowns have busted several high-profile mega-mergers this year, including a $150 billion deal between pharmaceutical giants Pfizer and Allergan.
Justice Department investigators have in recent years launched probes into “possible anticompetitive practices” in America’s Monsanto-led seed industry, though a formal investigation was closed in 2012 without pursuing charges.
The EU opened an investigation into the merger of Dow and DuPont this year and the merger of Swiss seed maker Syngenta and China National Chemical Corp. is also on their radar. The Monsanto/Bayer merger makes it the 5th agricultural merger this year alone. Others have included John Deere/Precision Planting, and Potash Corp./Agrium. All these mergers are coming at a fast past are alarming regulators, not to mention, farmers.
Now, about that John Deere merger. Precision Planting is owned by Monsanto and the Justice Department filed a lawsuit against the merger back in August. Renata Hesse, the head of the antitrust division said, “If this deal were allowed to proceed, Deere would dominate the market for high-speed precision planting systems and be able to raise prices and slow innovation at the expense of American farmers who rely on these systems,
If all these mergers go through, around 75 percent of the global agricultural/pesticide and agricultural services industry could end up in the hands of three companies. Farmers fear lack of competition would raise prices and that concern is a valid one, especially in a time of flat crop prices cutting into their incomes. The concern is so great that Iowa Republican senator and chairman of the Senate Judiciary Committee Charles Grassley has slated a hearing for Sept. 20 to question seed-industry executives and experts.
Grassley said the hearing will focus on the transactions currently being reviewed by antitrust regulators, and the current trend in consolidation of the seed and chemical industries.
The seed and chemical industries are critical to agriculture and the nation’s economy, and Iowans are concerned that this sudden consolidation in the industry could cause rising input costs in an already declining agriculture economy.
And here’s a question. What about the name Monsanto? Good question. Glad you asked. Here we have a bit of confusion. Monsanto says the deal is a merger. Bayer says it’s an acquisition. What’s the difference you ask?
Well a merger is where two companies form a new company. An acquisition is when one firm buys out another and the bought company ceases to exist.
Which will it be? Hmmm. Given Monsanto’s negatives in the PR department, I will go out on a limb, with my limited knowledge, and say this will be an acquisition. Monsanto will be folded into Bayer and Monsanto will cease to exist.
* Here’s what I never got about corporation finances. Look at the above quote. Monsanto didn’t say they were losing money. They said their profits were squeezed. What exactly does that mean? They’re still making money, just not as much as they’d like so, so laying off people seems like a real dick move. In the first quarter of this year their net income was $1.06 billion compared to last year when it was $1.42 billion. Did they really have to lay off 2,000+ people? Yeah, I know shareholders, blah, blah blah. But still. This just goes to show that as benign as Monsanto is in relation to other corporations, they’re still a corporation and they act like one when it comes to money. I don’t know this is a fact, but I’m assuming that the execs didn’t take a pay cut during this downturn.
The suits may be nice people, but when it comes to profits, their loyalties lie with the company and not the people who work for it. That’s why I never hopped on the Monsanto bandwagon and bought a shirt or hat etc. as a poke in the eye to the anti-gmo crowd.