The 2016 acquisition by Bayer of seed and chemical giant Monsanto has turned out to be a rotten deal. Shares in the German company have fallen 30 percent since the $63 billion deal closed, and are now at just 50 percent of their value in 2015, when the company was Germany’s most valuable.
The farmer-members of the St. Albans Cooperative Creamery in Vermont voted overwhelmingly on Monday to merge with the nation’s largest dairy cooperative, Dairy Farmers of America.
The Department of Justice on Tuesday approved Bayer’s $66 billion acquisition of Monsanto, completing a two-year approval process for the mega-merger that spanned several countries. The combined company will be the largest agrochemical and seed company in the world with about $48 billion in annual sales.
A new poll and report from the Konkurrenz Group found that the vast majority of farmers disapprove of the proposed merger between Bayer and Monsanto. Nearly a thousand farmers, from 48 states, responded to the poll.
In a multibillion-dollar asset swap, Dow is selling part of its crop protection operation to FMC and and picking up nearly all of FMC's health and nutrition business. As part of the deal, FMC will acquire a Dow agricultural research center in Newark and turn it into the global research and development center for FMC, which is based in Philadelphia, says the Wilmington News Journal.
The administrative arm of the European Union approved the merger of Dow and DuPont based on their promises to divest some assets, says Deutsche Welle. It was the first decision on a wave of proposed consolidations that would reshape the seed and ag-chemical sector into a "big three," down from the six firms that now compete.
Two senior farm-state senators filed legislation to make USDA a permanent member of the high-powered federal panel that decides whether foreign investment in the United States would impair national security interests. The legislation sponsored by Senate Judiciary Chairman Chuck Grassley and Michigan Sen. Debbie Stabenow, the senior Democrat on the Agriculture Committee, would require the panel to consider the impact of a proposed foreign investment on U.S. food and agricultural systems.
To satisfy EU regulators, U.S.-based Dow and DuPont offered to sell part of DuPont's crop protection business along with its associated research and development and Dow's business in copolymers and ionomers, said the News Journal. The companies hope to complete their $130 billion merge in the first half of this year.
The executives who want to create the largest seed and ag chemical company in the world told President-elect Donald Trump that they would spend at least $16 billion over six years on agricultural research in the United States if regulators approve Bayer's purchase of Monsanto.
The $57 billion purchase of Monsanto, the world's largest seed company, by German pharmaceutical giant Bayer has the approval of Monsanto shareholders by a three-to-one vote, said the St. Louis-based company after a special meeting. Chief executive Hugh Grant said he was confident of U.S. antitrust approval of the deal, creating a seed and agricultural chemical behemoth.