If Monsanto should chose to accept the proposed acquisition presented by Bayer AG, the deal would put 83 percent of U.S. corn seed sales and 70 percent of the global pesticide market under the control of three consolidating companies.
The Wall Street Journal reports that would raise fears from the agricultural sector at a time when farmers face heavy pressure after three years of sliding crop prices.
The National Farmers Union has long opposed such mergers as President Roger Johnson says if the deal were to be accepted; there will “almost certainly” be much less competition in the marketplace.
Johnson says the lack of competition would mean “farmers will end up paying higher prices than they otherwise would be paying.”
Combining Monsanto’s top position in crop seeds with Bayer’s much broader pesticide portfolio would lead to 28 percent of worldwide pesticide sales, 36 percent of the U.S. corn seed market and 28 percent of soybeans, according to Morgan Stanley estimates.
