Baumann’s monster may be best left in the corporate finance lab – Telegraph.co.uk

8 months ago Comments Off on Baumann’s monster may be best left in the corporate finance lab – Telegraph.co.uk

Monsanto accounts for more than a quarter of all seeds sold in the world, while Bayer has just a sliver of the market. However, the German company Bayer is a much bigger player in agrochemicals than Monsanto. A merger of the two would enable them to challenge Syngenta to be the world’s largest agrochemical company, with combined annual sales of more than $67bn.

However, the idea that creating this monster of a company is something to be welcomed will be dismissed by many. Critics claim the deal would be very bad for both farmers and consumers after a flurry of deal-making left just a handful of companies wielding huge power of the agricultural industry.

Syngenta, Bayer, BASF, Dow, Monsanto and DuPont control 60pc of the commercial seed market and more than 75pc of agrochemical markets. With ChemChina buying Syngenta, Dow and DuPont looking to get together, and now Bayer bidding for Monsanto, the influence of a few will become vastly more concentrated and seed prices are likely to continue to rise. 

Baumann’s monster may be best left in the corporate finance lab – Telegraph.co.uk}