Question

2. What the relation between Monsanto and Bayer and How was Bayer German company able to control the world price of Bio-Agriculture products? What factors ended its monopoly? What is its new strategy for earning economic profit, rather than just normal profit?

Answer 1

Bayer AG s a German multinational pharmaceutical and life sciences company and one of the largest pharmaceutical companies in the world.

The Monsanto Company was an American agrochemical and agricultural biotechnology corporation founded in 1901. In 2018, it was acquired by Bayer as part of its crop science division.

In September 2016, Monsanto agreed to be acquired by Bayer for US$66 billion. In an effort to receive regulatory clearance for the deal, Bayer announced the sale of significant portions of its current agriculture businesses, including its seed and herbicide businesses, to BASF.

The deal was approved by the European Union on March 21, 2018, and approved in the United States on May 29, 2018The sale closed on June 7, 2018; Bayer announced its intent to discontinue the Monsanto name, with the combined company operating solely under the Bayer brand.

the Monsanto-Bayer merger represents a near-monopoly on the agriculture supply chain, which eliminates marketplace competition and forces farmers’ complete reliance on genetically modified organisms (GMOs).

After two years of controversial negotiations with regulatory agencies around the globe, the German pharmaceutical giant closed an all-cash merge with Monsanto in June, creating the largest seed and ag-chemical company in the world. The newly-formed mega-corporation is estimated to receive approximately one-quarter of seeds and pesticides spending worldwide. That’s a near-monopoly with a massive market share at over 60% of global revenue. The seed, trait, and pesticide marketplace is more concentrated now than ever before.

bayers monoply ended .India Ends Bayer Monopoly