Rush for ag-chem megadeals clogs regulatory path, worries farmers
As Bayer AG joins the agricultural sector's scramble to consolidate, its bid for Monsanto Co may be a tipping point for U.S. farmers, federal lawmakers and regulators concerned the tie-ups may harm the farm economy. If Monsanto accepts Bayer's unsolicited offer, experts say, the deal would inevitably trigger a review by federal antitrust regulators. But that review would be slowed down by the fact that two other major mergers of the companies' rivals are also underway. Farmers and lawmakers say a Bayer-Monsanto deal could be one too many for an agrochemical and seed market where prices have risen and, say critics, innovation has suffered after it shrank to just six large players. Jeffrey Golman, vice president at Mesirow Financial, said the sheer size, scope and number of these deals would inevitably slow regulatory reviews and potentially complicate the process of finding buyers for divested assets. "I can't imagine that this could g...
