• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948

1

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

2

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

3

An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
LeadershipThe Future of

The Justice Department Is Going to Let Bayer Buy Monsanto. Here’s Why It Matters

By
Hallie Detrick
Hallie Detrick
Down Arrow Button Icon
By
Hallie Detrick
Hallie Detrick
Down Arrow Button Icon
April 10, 2018, 8:43 AM ET
Add Fortune on Google for similar content.

The U.S. Justice Department has just given Bayer permission to buy Monsanto in a $62.5 billion deal.

The approval (with some conditions) was the last big hurdle for the deal, which has been in the works since May 2016. DOJ approval follows European Union approval in March and a “productive” meeting between Bayer and President Trump in January. It’s the largest all-cash buy-out on record and the largest deal ever by a German company.

But not everyone is over the moon about the tie up that will let one company control more than a quarter of the world’s seeds and pesticides.

Here’s what you need to know:

1. What’s the Deal?

In May 2016, Bayer made an unsolicited offer to buy Monsanto at $122 a share, or about $66 billion. (The deal is now valued at $62.5 billion.) Bayer is a German drug and chemical maker; Monsanto is an agricultural juggernaut based in St. Louis, Mo. Together, they represent the pinnacle of data-driven industrial agriculture, which the companies say will be necessary to feed a planet that hosts 10 billion people. Werner Baumann, the CEO of Bayer, and Hugh Grant, Chairman and CEO of Monsanto, emphasized their companies’ ability to invest more in innovation once joined, pledging to spend $16 billion on research and development worldwide over six years. However, Business Insider points out that this is only a total of $500 million more than the companies are spending on R&D right now.

2. What Did DOJ Approve?

With such a big tie-up inevitably comes anti-trust concerns. Although Bayer and Monsanto are ostensibly function in different sectors, there is some crossover between their products. To satisfy the DOJ, Bayer will sell off some of its assets to German competitor BASF before the merger. These include the company’s soybean and cottonseed businesses as well as its glufosinate weedkiller, which is a direct competitor to Roundup, a central element of Monsanto’s business.

3. Why Are Farmers So Worried?

For all Baumann and Grant’s bluster about innovation and feeding the world, many farmers worry that this merger is motivated by profit alone—which will be much easier to make after the tie-up. Mark Connelly, an agriculture analyst, told Business Insider, “These companies want to make more money, they want to raise prices. No company in this industry needs these deals in order to innovate.” Moreover, research from the Farmers Business Network shows a positive correlation between a company’s market share and its seed price. Market share is also an indicator of yield, but the gains taper off quickly. If this pattern holds, farmers could be paying a whole lot more money for not much more yield.

4. What Will It Mean for Consumers?

If farmers’ fears come to fruition, consumers could see prices go up not only on agricultural products, but also on the umpteen products that hide corn and soybean inputs such as gas. The Bayer-Monsanto deal is big enough on its own to create cause for concern. It’s even more worrying in the wake of the ChemChina-Syngenta takeover and Dow Chemical’s merger with DuPont.

About the Author
By Hallie Detrick
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Leadership

tobi
C-SuiteTaxes
Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
By Nick LichtenbergJuly 27, 2026
2 hours ago
Oprah Winfrey
SuccessCareers
Oprah Winfrey says ‘life starts at 44’—and research proves she’s right: the average founder starts their business after 40
By Emma BurleighJuly 27, 2026
3 hours ago
Capital One’s MLB partnership is turning fan experiences into long-term customer value
BankingCFO Daily
Capital One’s MLB partnership is turning fan experiences into long-term customer value
By Sheryl EstradaJuly 27, 2026
6 hours ago
A businessman in busy modern office while employees walk past.
NewslettersFortune Workplace Innovation
Hybrid work has a $9 million problem. The fix depends on who you ask
By Kristin StollerJuly 27, 2026
6 hours ago
Apple’s next CEO helped build its hardware empire. Now he has to find its next breakthrough
C-SuiteNext to Lead
Apple’s next CEO helped build its hardware empire. Now he has to find its next breakthrough
By Ruth UmohJuly 27, 2026
7 hours ago
StubHub CEO Eric Baker is under scrutiny for enabling mass scalpers on his ticket reselling platform
NewslettersCEO Daily
StubHub CEO Eric Baker is under scrutiny for enabling mass scalpers on his ticket reselling platform
By Diane BradyJuly 27, 2026
9 hours ago

Most Popular

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
Economy
College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
By Mia OsmonbekovJuly 26, 2026
1 day ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
2 days ago
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Success
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
By Orianna Rosa RoyleJuly 25, 2026
2 days ago
I've been teaching college students for decades. Most of them can no longer finish a book
Commentary
I've been teaching college students for decades. Most of them can no longer finish a book
By Austin SaratJuly 26, 2026
1 day ago
New York City women are making up to $30,000 per month by renting out their closets to strangers
Retail
New York City women are making up to $30,000 per month by renting out their closets to strangers
By Sarah GlodekJuly 27, 2026
11 hours ago
A Hims cofounder fired his marketing agency for an AI-powered team. Now his 24/7 online vet service is growing 20% a month
Success
A Hims cofounder fired his marketing agency for an AI-powered team. Now his 24/7 online vet service is growing 20% a month
By Sydney LakeJuly 25, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.