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Trump ready to approve merger of two chemical giants Monsanto and Bayer
Trump ready to approve merger of two chemical giants Monsanto and Bayer

The merger of Monsanto and Bayer will enable them to dominate the global crop and pesticide market and take control of our food system. Who benefits from a monopoly in biotechnology and agricultural supplies?

How the emerging Trump administration views GMOs

Donald Trump has nominated Senator Jeff Sessions as Attorney General that Bayer AG could help buy Monsanto for $ 66 billion, which is currently under federal and state antitrust investigations.

After months of bickering in September, Bayer agreed to buy Monsantoza a decent amount. The merger with Bayer would give it ¼ of the global seed and pesticide market, leading to less competition in the industry, higher seed prices, and ultimately higher food prices. Several US state attorneys have joined the federal antitrust investigation into the merger.

But at the same time, skepticism is growing that the deal will actually take place, as the shares of both companies fell after the acquisition was announced. However, since Trump's election on Nov. 8, Monsanto's stock is up more than 4%.

Some experts fear that with the approval of Sessions by the US Attorney General, the close scrutiny that was under the Obama administration, could weaken.

Evercore ISI head Terry Haynes wrote on November 19:

“Probably, the nomination and approval of the Senate Sessions, which has been such since 1997, the market will react positively to mergers and acquisitions. Sessions as attorney general will immediately move away from Obama's antitrust competition policy towards more friendly M&A activism.”

As Attorney General, Sessions will not only lead the Justice Department, but will also be tasked with enforcing antitrust laws and prosecuting white-collar crime. According to Haynes, Sessions will not automatically associate large companies with low market competition. Sessions may decide "that no reflexive test of disapproval of the merger will be applied, as the Obama regulators did with the 4/3 Doctrine."

However, some lawyers believe that as the US Attorney General, Sessions will be tough on corporate crime. Daniel Richman, a former federal attorney and professor of law at Columbia University, told Reuters that Sessions would be a "strong proponent" of corporate practice.

Time will tell.

Other reasons for concern

President-elect Trump has selected Mike Pompeo as the CIA director, a man whom Carey Gillam of Right to Know calls "the designated hitter for Monsanto and other big agrochemical and seed players."

Trump owns $ 15,000 to $ 50,000 in Monsanto and does not support GMO labeling. When asked in Iowa, "Do you support the use of biotechnology in food and resist efforts to mandate labeling of foods simply because they contain ingredients derived from biotechnology?" Tamp allegedly answered "Yes."

During the presidential campaign, Trump convened an advisory board made up of friendly agricultural agribusiness.

Bayer and Monsanto promise Trump to invest $ 16 billion in development

Bayer and Monsanto plan to spend about $ 16 billion on agricultural research and development over the next six years after the merger.

This was discussed at the meeting of the heads of Bayer AG and Monsanto Co with the US President-elect Donald Trump and his team, according to World Grain.

As the representatives of both companies promise, it will be "investment in innovation and people who will create several thousand new high technologies, as a result - well-paid jobs in which people will keep the United States at the forefront of agricultural innovation."

In particular, it is planned to invest in the development of the world seed market, in research and development. It is expected that high-tech professionals such as geneticists, robotics, satellite imagers, engineers, data scientists, breeders and statisticians are expected to drive future agricultural innovation.

At the same time, it is noted that the agreement on the merger of Bayer and Monsanto remains open.

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