Monsanto/Bayer Deal Approved
In April, the U.S. Department of Justice approved Bayer’s acquisition of Monsanto, conditional upon the sale of certain assets to secure antitrust approval. This is the second major approval, after the European Union (EU) approved the sale late last year. At this point, Canada and Mexico must still approve the sale, but neither are expected to oppose the sale after the EU and U.S. approved it.
What does this mean for the ornamental industry? To be honest, at this point no one quite knows. One thing is true, though: the merger will create the largest (inflation adjusted) agricultural company in history and that is sure to affect us all in one way or another. That makes a lot of people nervous and many are specifically wary about the prospects for higher chemical prices as the industry consolidates. Yet at this point, all we can do is take a wait-and-see approach regarding the merger. GT