Today, chemical giant Bayer put in a $62bn (£43bn) bid to take over agrochemical company Monsanto, a move which would see the formation of the world’s biggest agricultural supplier.
This would be the biggest ever takeover bid made by a German company, as the country tends towards lower risk expansions, and the offer has caused controversy among Bayer investors. Concerns have arisen because this would mean Bayer’s main interest would be in the agricultural sector, with many investors joining the company because of their pharmaceutical products.
Monsanto itself tried to take over rival company Syngenta last year, but had their offer rejected, and announced plans to cut 3,600 jobs in the aftermath. It’s unclear at the moment how this new merger will affect staff at the company, but many will be hoping the job cuts will be cancelled as Bayer take over.
Whatever the outcome, this and the upcoming merger of Syngenta and ChemChina which is yet to go through, will no doubt have a huge impact on the agrochemical industry in the upcoming years. With big pharma taking a tumble and small and SMEs coming into their own in recent years, the formation of huge chemical companies may prove a risky move. Time will tell.