Monsanto-Syngenta merger could start chain reaction

If Monsanto pulls off a merger with Syngenta, a leader in one of the remaining major agrochemical companies expects an industry-wide overhaul of strategy, said Bloomberg. “It would definitely force a review of how everybody is going to react,” said Liam Condon, head of Bayer AG’s CropScience in an interview with the wire service. “There’s only six research and development based players in this industry so if the two biggest were to go together, inevitably it would force others to review their strategies.” So far, Syngenta has rejected Monsanto’s offers. The other major companies are BASF, Dow and DuPont.

Analysts say Bayer is a potential buyer for Syngenta’s seed business, which Monsanto, the world’s largest seed company, would have to sell to satisfy antitrust regulators. Said Bloomberg, “Bayer has a ‘clear’ view on how to respond in the event Monsanto proceeds with its takeover plan, Condon said.” Bayer is No. 2 behind Syngenta as a maker of crop chemicals.

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