Monsanto-SyngentaMega Merger

Monsantoand Syngenta are companies that specialize in agriculturalbiotechnology. Monsanto is an American company while Syngenta isSwiss. The merger would make Monsanto the biggest pesticide and SeedCompany in the world. I oppose the merger.

Legalbasis

TheMonsanto may get rid of redundant jobs. Integration can be toughbecause people are often losing their jobs (Whitaker, 2012). It mayalso eliminate research expenses that were similar in Syngenta andMonsanto. That would also result in some workers losing their jobs.It is unlikely that the savings, from the job cuts, will reach thefarmers.

Monsantowould dominate the market. The acquisition would mean that there willbe fewer firms competing in the biotech field. Syngenta is one of themajor biotech companies in the world. That may result in Monsantohaving a lower incentive to innovate since the competition, a majordrive for innovation will reduce.

Thenumber of firms in the biotech market will also reduce. That meansthat farmers have less choice of vendors for seeds and otheragricultural inputs. The price of biotech inputs may also increase.

Monsantolicenses some of its competitors when it comes to seed technology andgenetics. A merger may result in Monsanto taking back some of thelicenses since it may have the ability to provide now the servicepreviously licensed out.

Practicalbasis.

Themega-merger may lead to the creation of additionalherbicide-resistant crops. The acquisition would provide Monsantoadditional incentive to develop herbicide-resistant crops. Biotechdevelopers would like to commercialize herbicide resistant cropsbecause they allow a farmer to use herbicides to eliminate weedswithout harming the crops. Such plants interfere with the environmentby enabling the farmer to use more herbicide than before leading toweeds being tolerant to herbicides and also environmental pollution.

Itwould also increase production of genetically modified crops. That isbecause the merger would increase the market for Monsanto’sgenetically engineered crops. These plants make a farmer rely more onpesticides and synthetic fertilizers that harm the environment.

Reference

Whitaker,S. C. (2012).&nbspMergers&amp acquisitions integration handbook: Helping companies realizethe full value of acquisitions.Hoboken, NJ: Wiley.