Updated on 27 September 2016
Singapore: The Bayer Monsanto deal has made headlines for many reasons. The mega deal has received mixed reactions from many analyst and farmer groups, with Organic Consumers Association tagging it as a "Marriage Made in Hell" The company heads and few experts however described the deal as a means to arrest food scarcity and plan to improve "the lives of growers and people around the world."
German pharmaceutical and chemicals maker Bayer AG has recently made an open offer to buy upto 26 percent additional stake in Monsanto India for more than Rs.1,100 crore, as per a stock exchange filing. The drug maker is all set to buy US-based seed conglomerate Monsanto Co for a whopping $66 billion.
The deal, agreed after months of back and forth negotiations, will dramatically expand Bayer in the U.S. and increase its presence in agricultural seeds, where Monsanto is an industry leader. The merger is being presented as a way to scale Bayer's operations in seeds, crop protection and other agricultural specializations as demand for vegetables and grains surges in the coming decades.
The merged entity will benefit from Monsanto's leadership in seeds and its recent acquisition of the Climate Corporation, while Bayer's global crop protection presence may open up new markets for growth.
"Together Monsanto and Bayer will build on our proud tradition and respective track records of innovation in the agriculture industry, delivering a more comprehensive and broader set of solutions to growers," Hugh Grant, CEO of Monsanto, said in a statement. The combined business is expected to give farming customers new solutions, including agronomic insight supported by Monsanto's digital farming applications, which can bolster yields, efficiency and environmental sustainability.