It’s famous for making some controversial and highly toxic chemicals like polychlorinated biphenyls, now banned and commonly known as PCBs, and the herbicide Agent Orange, which was used by the US military in Vietnam.
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In terms of the USA corn seeds and traits market, according to Morgan Stanley Research, a merged Dow and DuPont would have about a 41 percent market share, while a merged Monsanto-Bayer would have about 36 percent.
Bayer, the German company that makes aspirin made a big announcement this morning. It would also benefit from the USA company’s big presence in North America. That review should present no impediment, Mr. Baumann said, given Bayer’s 150-year history of doing business in the U.S.
Bayer has finally secured the acquisition of St. Louis-based Monsanto with an offer that amounts to about $66 billion, after months of courting and two previous offers. The company has been criticized world-wide for the influence of company’s products, including genetically modified seeds and chemical herbicides, has on the environment and public health.
In the 1980s, its scientists were the first to genetically modify a plant cell. “For that reason a lot of the barnacles and negatives attached to these technologies became their problem more than the others”.
The European competition regulators said publicly before a deal was even signed that they would look at how the combination could affect prices and the availability of seed products as well as research. If successful, it would lead to the biggest deal this year and the largest ever by a German company. As a result, growers will benefit from a broad set of solutions to meet their current and future needs, including enhanced solutions in seeds and traits, digital agriculture, and crop protection. It is anticipated to be closed by the end of 2017.
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Under the proposed transaction, the global Seeds & Traits and North American commercial headquarters would be located in St. Louis, Missouri and the company’s global crop protection and divisional crop science headquarters would be in Monheim, Germany. Later, the scrip settled 1.72 per cent down at Rs 2528. This is up from Bayer’s previous offer of $127.50 per share. The $66 billion figure put on the deal by Bayer includes net debt; the equity value is $57 billion, according to slides for an investment analyst conference call. It has been approved by Monsanto’s Board of Directors and Bayer’s Board of Management and the company’s Supervisory Board. “This combination with Bayer unlocks the next tranche of growth and opportunities”. An earlier version of this article incorrectly stated it was Monday.
