Monsanto-Bayer Deal Raises Regulator Scrutiny for Ag Tie-Ups
We think the deals are still likely to close, although the probability has decreased.
With Monsanto (MON) finally accepting Bayer's (BAYRY) purchase offer, antitrust regulators have a full plate of seed and crop chemical tie-ups to review. With several potential deals being considered together, we think the probability that each of the deals will be approved has decreased compared with a scenario where each deal faces the regulatory bodies on its own.
Still, we think it's more likely than not that all of the deals currently on the table--Bayer's purchase of Monsanto, the merger between Dow Chemical (DOW) and DuPont (DD), and ChemChina's purchase of Syngenta (SYT)--will eventually receive regulatory approval. This view is based on the general lack of product overlap between the companies involved and our belief that selling seeds and crop chemicals together is not a path to increasing competitive advantage. We also think there will be more than enough competition among the remaining players to foster future industry innovations. We expect relatively minor divestitures will appease regulators in areas where product portfolios are sufficiently similar.
Jeffrey Stafford does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.