The multinational drugmaker Bayer tried again to buy the chemical colossus Monsanto with an offer of $65 Billion. The bid is raised of one billion respect to last one. Bayer is one of the biggest pharmaceutical companies in the world and, if the acquisition of Monsanto will take place, it will become a giant in chemistry.
Monsanto is a U.S. company specialized in pesticides and seeds. The two are still agreeing on some terms and Monsanto does not exclude retractions and inclusion of third parties and other offers in the game. The amount offered by Bayer is higher than Bayer’s annual income and will make Monsanto’s shares amounting to $127.50 (consider that an Apple’s share is $107.70).
In the case in which Monsanto will accept the offer, Bayer will face issues with the anti-trust agencies as the giant will easily break the rules of fair competition in its establishment of a ‘chemical monopoly’. Why does the biggest drugmaker want to expand? In simple terms, Monsanto represents for Bayer the last step to its “top stop in the fast-consolidating farm supplies industry,” says the CNBC.
Monsanto had been accused of its genetically modified and carcinogenic products. Bayer, the German pharmaceutical company, had been accused of causing major medical problems to its buyers. It would be a euphemism saying that neither party is a bastion of ethics. Monsanto knows what game the German giant is playing and has no intention of losing the game. Rather, it aims at increasing the share offered to $130 and at establishing a deal with Bayer in order to tackle the anti-trust. Instead of facing a monopoly to disrupt in the sake of fair competition, antitrust agencies will have to deal with a concealed oligopoly.
