Why Did Bayer Buy Monsanto?
Fully aware of the accusations building up against Monsanto, Bayer, already the biggest pesticide company in the world, upped its bid three times ($US6B) to acquired this the 'most hated company in the world'.
Monsanto was already on the verge of being found guilty of negligence and liable for the cancer linked to its flagship product, the infamous Roundup herbicide. The acquisition seemingly doesn't make sense ...
Bayer just lost a $2 billion lawsuit over claims that the weedkiller Roundup causes cancer. Its stock has been in a free-fall all year, as more bad news about Roundup reaches the public. The company’s stock is now down by more than 44% since the acquisition of Monsanto.
It now faces a shareholder revolt and over 30,000 more lawsuits on similar charges. Just from the marketing perspective RoundUp had already reached saturation in the USofA, and in the EU was facing huge consumer concerns about health and environmental harm. All this was so obviously inevitable that it makes you wonder - What on Earth were they thinking? Their CEO thinks they are onto a winner, but they're not telling anyone why.
Long famous for its Carnaval, coffee and rain-forest destruction, Brazil is also the world's second largest soybean producer, (after USofA). With 98% of the world's soybeans used for livestock feed we're talking about factory-farmed beef in China and the USofA here.
Mre details to come ///