Chemical Giant Bayer Agrees To Buy Monsanto For $66 Billion

The end of Monsanto would usually be considered as an environmental and societal victory. However, instead of a complete breakdown of this unethical business, caused by consumers and farmers turning their back on their products, their end comes in the form of a $66 billion takeover by German pharmaceutical and chemical giant Bayer.

The mix of a chemical company and a seed company who both endorse the use of pesticides and GMO foods is likely to have far-reaching and devastating impacts. It is likely that as an astronomically large business, the pair will be able to create a monopoly in the farming sector which will lead to an increase in prices and an even further decrease in ethical practices.

Details of Bayer’s Takeover

The full $66 billion takeover is expected to be completed towards the end of 2017, although experts believe that there is only a 50% chance that the deal will be finalized. If the deal does go through it would be the largest ever foreign acquisition by a German company.

The skepticism behind the deal forced Bayer to offer a $2 billion compensation fee to Monsanto if it falls through. Analysts at the Bernstein research group think that many factors could hold up the deal. ‘We believe political pushback to this deal, ranging from farmer dissatisfaction with all their suppliers consolidating in the face of low farm net incomes to dissatisfaction with Monsanto leaving the United States, could provide significant delays and complications,’ they said.

In spite of the skepticism from certain groups, the deal is likely to line the pockets of the Monsanto shareholders. As part of the agreement, Bayer has agreed to 44% premium on Monsanto stock. No matter how you look at it, this agreement ensures that the wealthy, unethical owners of the world’s most evil corporation will be enjoying a boost to their already inflated bank accounts.

Reactions to Bayer’s Takeover

The news of this deal has caused outrage among farmers, environmentalists, politicians, community leaders and the public, with many calling for government intervention. Vermont Senator Bernie Sanders (who lost out to Hillary Clinton in the Democratic Presidential nomination vote), has fervently called for a block on the takeover.

‘These mergers boost the profits of huge corporations and leave Americans paying even higher prices,’ said Sanders. ‘Not only should this merger be blocked, but the Department of Justice should reopen its investigation of Monsanto’s monopoly over the seed and chemical market.’

Sanders isn’t the only one who is horrified by the prospect of the combination of these two giants. Adrian Bebb, Friend of the Earth’s food and farming campaigner, believes that the takeover ‘threatens to further lock in industrialized agriculture at the expense of nature, farmers and the wider public’ and warned that ‘this mega corporation will be doing its best to force damaging pesticides and GM seeds into our countryside.’

It isn’t just the environment and the wider public that are likely to suffer. The increased seed and chemical price are likely to hit farmers the hardest. Forcing them to either go out of business or increase prices to unsustainable levels.

John Colley, professor of international business at Warwick Business School said: ‘Bayer’s acquisition of ‘Frankenstein’ crop producer Monsanto could be a horror story for both Bayer and its customers: the farmers. Apart from Monsanto’s shareholders, who have hit the jackpot, this looks like a lose-lose bid. The farmers will lose out as product ranges are rationalized and attempts are made to increase prices.’

This takeover is further proof of the power of corporate greed and the lack of accountability that our system breeds. It is easy to feel powerless in the face of faceless and evil corporations, however, before this deal is completed it is possible to make a difference.

Sign petitions and reach out to your local politicians to put pressure on your government to investigate this deal, don’t be guilty of apathy and do nothing. If a deal of this magnitude goes through the ramifications could be severely damaging to ordinary people and the planet.

As a German based company, the introduction of GMOs to the European Union could begin (something the EU has successfully resisted thus far) and the use of pesticides and other chemicals could become even more widespread. Over the next year, we will see whether big business can be stopped by common sense.