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U.S. States Join Gov. Probe of Bayer-Monsanto, Dow-DuPont Mergers

Wednesday, November 16, 2016 9:48
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Natural Society

Several U.S. state attorneys general will join the
pending federal antitrust investigations
into the
multi-billion dollar mergers between Bayer and Monsanto,
"http://naturalsociety.com/dow-dupont-merge-split-3-mega-companies/"
target="_blank">and Dow and DuPont
. [1]

The attorneys general will be able to provide data on how the
prospective mergers – which are expected to be
approved
– would affect their jurisdictions and jointly
conduct calls to gather information from the companies, their
opponents, and supporters of the deals.

The 2 mergers, along with ChemChina’s $43 billion planned merger
with chemical and seed maker Syngenta, threatens to
completely change the landscape of the global seed
and pesticide markets. The deals’ approval would mean that Dow
Chemical and DuPont would become 1 of the biggest chemical
makers in America
, and Bayer and Monsanto would morph into
the largest seed and pesticide company in the
world.
[2]

The Dow-DuPont merger is already under heavy scrutiny by state
attorneys general, and it is facing difficult and protracted
reviews by U.S. antitrust enforcers. But now things are about to
get even tougher for the pending conglomeration, as 7
states, including California, have joined the probe
.
[1]

"http://naturalsociety.com/wp-content/uploads/dowdupont.jpg" width=
"500" srcset=
"http://naturalsociety.com/wp-content/uploads/dowdupont.jpg 700w, http://naturalsociety.com/wp-content/uploads/dowdupont-236x220.jpg 236w, http://naturalsociety.com/wp-content/uploads/dowdupont-354x330.jpg 354w"
sizes="(max-width: 700px) 100vw, 700px" alt="" />Source: The Wall
Street Journal

The states are concerned that once they merge, Dow and DuPont could
raise the prices of pesticides and herbicides for farmers, and
would have less incentive to compete to introduce
better and cheaper products.

In separate statements, the companies said:

“In the U.S., we are working constructively with federal and
state regulatory authorities, elected officials, and all
agriculture stakeholders to show the pro-competitive benefits of
the merger.”

In its own statement, Bayer said it looked forward to “working
diligently with regulators to ensure a successful close.”

Bayer and Monsanto control the top 2 cotton seed brands in the
United States, which represents about 70% of all cotton acreage in
the country. The companies’ overlapping cotton seeds are a major
concern for the feds and attorneys general. Bayer licenses genetic
traits that make seeds resistant to the herbicide Liberty, while
Monsanto licenses traits that make seeds resistant Roundup, the
glyphosate-containing herbicide mired in so much controversy.
[2]

"http://naturalsociety.com/wp-content/uploads/cropchemicals-e1478634095478.png"
width="500" alt="" />Source: Bloomberg

DuPont’s Altacor and Dow’s Intrepid insecticides will also
reportedly be investigated. Altacor and Intrepid, which are applied
to high-value crops like almonds, pistachios, grapes, and apples,
are chemically different but overlapping products.

Peter Carstensen, a law professor at the University of Wisconsin
and leading agricultural antitrust expert, explained why that’s a
problem:

“One of the worst things you could do is to link Liberty and
Roundup in the same company. There’s no incentive for somebody
to develop a third alternative.”

We don’t want a third chemical option, but
that is 1 of the investigators’ concerns.

More importantly, consumer groups have expressed fears that the
mergers will mean that “ "http://naturalsociety.com/bayer-monsanto-sign-mammoth-merger-agreement-5813/"
target="_blank">farmers get paid less
for their crops, more
pesticides are used, and there are fewer options for consumers at
the grocery store.”

Sources:

[1] "http://finance.yahoo.com/news/exclusive-u-states-join-dow-220433907.html"
target="_blank">Reuters

[2] "http://www.ecowatch.com/monsanto-bayer-merger-2084832217.html"
target="_blank">EcoWatch

"http://www.wsj.com/articles/dupont-dow-chemical-agree-to-merge-1449834739"
target="_blank">The Wall Street Journal

"http://www.bloomberg.com/news/articles/2016-05-12/bayer-monsanto-deal-may-be-exception-in-age-of-antitrust-actions"
target="_blank">Bloomberg


"http://feeds.feedburner.com//naturalsocietyblog/https://shop.naturalsociety.com/product/essential-survival-tools-lifestraw-personal-water-filter"
target="_blank">Storable Food "http://naturalsociety.com/wp-content/themes/gold/images/600x250-Lifestraw-Ad-Images-AN-14-9-2015.jpg"
width="500" />




Source: http://naturalsociety.com/us-states-join-gov-probe-bayer-monsanto-dow-dupont-mergers-1948/

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