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US GM seed corporation, Monsanto, has rejected an acquisition proposal issued on Monday by German company Bayer, worth over 62 billion dollars, since it considered it wasn´t enough.
Nevertheless, Monsanto is open to continue negotiating. It is possible that another German corporation, BASF, will issue a concrete proposal to the US company.
According to Spanish newspaper El País, Bayer assessed the value of the agrochemical conglomerate in 122 dollars per share, and although the negotiations are still open, experts claim that the German company does not stand a chance if it offers anything below 135 dollars per share.
The ETC Group, that focuses on the conservation and promotion of cultural and ecological diversity and human rights, has announced several times that the GM and agrotoxic giants were taking measures to broaden their access into the food market.
In April, ETC Group researcher Silvia Ribeiro wrote in an article titled "The fight for Monsanto to continue ruling" that the US company tried twice to acquire Swiss company Syngenta, the largest agrotoxic transnational corporation. But Syngenta rejected the proposals and decided to merge with ChemChina. Meanwhile, DuPont and Dow Agrosciences also decided to merge. This is when Monsanto started negotiating with Bayer and BASF to counteract these moves.
"If the fact that six transnational dominate a high percentage of the sale of seeds and agrochemicals was already an attempt against the food security and sovereignty of countries, now we are facing the possibility to have these global markets in the hands of only three companies", warned Ribeiro.
The researcher added extremely valuable information when assessing the weight of these large transnational corporations in the commercial, GM seeds and agrotoxics markets. "Until 2015, six companies (Monsanto, Syngenta, Dow, DuPont, Bayer and BASF) controlled 75 per cent of the global markets of agricultural poisons and 61 per cent of all kinds of commercial seeds, in addition to 75 per cent of private agricultural research".
In addition "in terms of GM seeds, the six companies control 100 per cent, that is the entire global market, although sometimes this is not seen because they keep the names of the companies acquired. DuPont, for instance, is more known as Pioneer Hi-Bred in the agricultural and seeds area", she added.
According to El País, Monsanto´s stocks increased by two percent after it was made known that they had rejected Bayer, because it is seen as a fact that the German company will make a new attempt to close an agreement.
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