Monsanto, Bayer officials defend proposed $66 billion merger

FILE - This Aug. 31, 2015, file photo, shows the Monsanto logo on display at the Farm Progress Show in Decatur, Ill. The Senate is set to take a closer look at a proposed $66 billion merger of American seed and weed-killer company Monsanto and German medicine and farm chemical maker Bayer. (AP Photo/Seth Perlman, File)
FILE - This Aug. 31, 2015, file photo, shows the Monsanto logo on display at the Farm Progress Show in Decatur, Ill. The Senate is set to take a closer look at a proposed $66 billion merger of American seed and weed-killer company Monsanto and German medicine and farm chemical maker Bayer. (AP Photo/Seth Perlman, File)

WASHINGTON (AP) — Top officials for Monsanto and Bayer are defending their proposed $66 billion merger as a deal that could help American farmers through greater investments in technology. They made the case Tuesday to skeptical senators worried the merger could hurt American farmers already struggling with lower crop prices and higher seed costs.

The combination of the American seed and weed-killer and German medicine and farm-chemical maker would create a global agricultural and chemical giant with a broad array of products.

Farm groups at the hearing testified that they’re worried about the consequences of a Bayer and Monsanto combination, as well as other agricultural biotech mergers in the works. The head of the National Farmers Union said if approved, the mergers would mean three companies have more than 80 percent of U.S. corn seed sales and 70 percent of the global pesticide market.

Iowa Senator Chuck Grassley described the mergers as emblematic of a “consolidation wave” he’s afraid “has become a tsunami.” Grassley urged antitrust regulators to closely watch consolidation of the agricultural biotech industry, noting that mergers between Dow Chemical and DuPont, and Syngenta AG and the China National Chemical Corp. are already under government review.

KRQE.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s