Mergers

Comment: Bayer Monsanto on the target

With the purchase of Monsanto the German agricultural chemicals group Bayer is handling the Mega-Deal of the year. This is not really a good message, even if the business is not without risks, says Henrik Böhme.

Evil now lives in Leverkusen, Germany. Of course you can see the Takeover of the US seed giant Monsanto by the German Bayer group. Because Monsanto is controversial because of its aggressive business practices, its genetically modified products, and because it makes the weed killer glyphosate. The funds is suspected to be carcinogenic. Nevertheless, it is authorised in the European Union. That is a lot of wood for the critics of a rampant agricultural industry. The can now deploy directly in Leverkusen in front of the factory gates.

The number One in the world, we are

Because that is where the future of the world’s largest provider of seeds and plant protection products. To be the number One in the world, was the goal of the very ambitious takeover plans by Werner Baumann, that is not even half a year at the helm of Bayer AG. This was in Leverkusen ready to grab deep into the pocket. 66 billion dollars in cash, this is not only a lot of money, it is the greatest Bar tender in the history of Economics. Typically, such Mega to be implemented, Deals by exchange of shares. And because we are just in superlatives: It is the largest Acquisition that has ever mastered a German company. And it is the largest Deal of the year.

DW business editor Henrik Böhme

Does everything have to be?

Of course, the question must be allowed: Is the thing really worth it? If you get a “bad guy” in the house, which costs a lot of money. And clearly, the money has to earn Bayer Yes again. Because in Leverkusen, you are not sitting, as, for example, in the case of Apple, on top of a money suitcase. But the other way around, asked: Is not it a good news for Germany as a business location, a group from the German stock Index is One in its industry in the world the number? The Deal would have to run differently. The Swiss Bayer competitors, Syngenta, the Chinese have a status, for example.

What will we eat tomorrow?

The future is digital, “digital farming” is the right word for it. Finally, the world is increasing population, there is a need to cram more and more hungry mouths. And the in times in which the consequences of climate change are threatening in many places to Harvest or even destroy it. There should be allowed also through newer forms of cultivation to think about. Now, if Bayer Monsanto has to Say, a group is established in a country, in which the use of genetic engineering largely forbidden, then this should have probably impact on the Portfolio of the new giant. Perhaps the new group manages to pass through the bundling of its capabilities, with better answers, how to get billions of people fed, without the added control completely to the sword. Then, each one of which would have been worth the many billions of dollars on each and every case.

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