Soon, very soon, in a reality none of us ever expected could happen, Bayer considers buying Monsanto and the Evil Empire begins with a $40B bid. German company, Bayer AG, producer of such incredible products as Zyklon B and Essure, the “permanent” birth control device responsible for ruining tens of thousands of women’s lives, is talking to Monsanto Company, the producer of Agent Orange, Dioxin, PCBs and most recently, GMO “frankenfood” seeds about purchasing the company.
Soon, very soon, in a reality none of us ever expected could happen, Bayer considers buying Monsanto and the Evil Empire begins with a $40B bid. German company, Bayer AG, producer of such products as Zyklon B and Essure, the “permanent” birth control device responsible for ruining tens of thousands of women’s lives, is talking to Monsanto Company, the producer of Agent Orange, Dioxin, PCBs and most recently, GMO “frankenfood” seeds about purchasing the company.
Monsanto has a current market value of approximately $43B, with Bayer almost double that at 79B euros ($90B). The internal discussions happening now are private and were leaked by those rebels who wished to remain anonymous. While no decision has been reached as to whether it will be an outright purchase, a joint venture or other arrangement, the idea that these two companies could soon be one is enough to freeze even a tauntaun’s blood.
Granted, neither company produces those earlier products for which they became so infamous, but they still manufacture things that should never see the light of day. One can only imagine a dark world where nickel-based implants are the norm and all food comes from a lab.
Of course, proponents of this new empire focus on the benefits of bonding brands like Sivanto, Bayer’s new insecticide that kills whiteflies and aphids but not bees with Monsanto’s Roundup, which kills, well, everything. They’re also pretty excited about the idea of even more genetically-modified crops, ranging from sugar cane to corn.
Those who still cling to the light in the world hope that this potential merger will be blocked by regulatory agencies. After all, authorities are looking into the $130B Dow Chemical Co./DuPont Co. merger and U.S. national security officials are scrutinizing China National Chemical Corp.’s attempt to buy Syngenta AG, a Swiss company, for $43B.
However, that’s a force that’s not likely to awaken any time soon, according to Lutz Krafft, a senior adviser at ChemAdvice GmbH, a consulting firm. Mr. Krafft is a former Bayer employee and said, “From the antitrust side, I don’t think there’ll be many issues.” Why? There aren’t enough overlaps in the companies’ products to set off the anti-trust alarms.
Monsanto is also on BASF SE’s radar. BASF is another chemical company and it’s currently holding council discussing a takeover offer for Monsanto. Either way, Monsanto’s stock rose 8.4% to close at $97.92 in New York on May 12, once Bayer’s interest was made public and StreetInsider reported BASF’s interest the evening before. This was the largest gain since August 2015. Conversely, Bayer’s shares dropped 4.9% to 95.15 euros in Frankfurt for the biggest dip since December 2015.
While the rest of the world may tremble at the thought of Bayer and Monsanto becoming one powerful unit, the move would be a boon to both companies. Monsanto is facing a worldwide lull in agricultural commodities after its attempt to purchase Syngenta was blown up last year. Sales dropped about 13% to $4.53B.
Soybean and corn prices have been falling over the last three calendar years, which is hurting the U.S.’ net farm income as well as decreasing demand for agricultural necessities such as weed killers and tractors.
If Bayer buys Monsanto, this match made in nightmares would reduce Monsanto’s reliance on agriculture and strengthen Bayer’s seed business, something that company is keen on doing. Before expressing interest in buying Monsanto, Bayer made a statement in April that it was planning to debut new GMO soybean seeds in Brazil in an effort to take some of Monsanto’s market share.
Though it may be too late…