August 11, 2015

11/08/2015: US farm and consumer groups plan to stop merger 

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Several US farm and consumer groups have expressed concern regarding Monsanto's bid to take over Syngenta AG, claiming that the market would be damaged if the two companies merged.

They said that they fear there would be fewer product offerings at higher prices. 
To combat the deal, market analysis is being conducted and coalitions have been formed. This adds to the hurdles that Monsanto will have to face in order to achieve its plan.

Although Monsanto has not yet convinced Syngenta to meet for negotiations, it states that it is trying to get Syngenta to take its US$45 million bid seriously. 

The company has also said that they are confident that the deal will be approved and that it would result in improved product innovation.

Should the deal materialise, the National Farmers Union is just one of the members of a coalition building its opposing case to be presented to the Justice Department.

Also against the deal are the Food and Water Watch consumer advocacy group and the non-profit American Antitrust Institute. 

Diana Moss, president of the American Antitrust Institute, claims that the deal is a "red herring" and that the resulting combined entity would have control over vast amounts of seeds, genetic traits, and crop chemicals.

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The National Corn Growers Association met with executives from Monsanto in July to discuss the proposed merger, and is seeking an independent analysis of the possible effect on the market that the deal would have. 

However, so far, large soybean and corn groups have not announced an official position for or against the deal, as they are waiting for further details.

Read more HERE.

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