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WASHINGTON (AP) — Top officials for Monsanto and Bayer are defending their proposed $66 billion merger as a deal that could help American farmers through greater investments in technology. They made the case Tuesday to skeptical senators worried the merger could hurt American farmers already struggling with lower crop prices and higher seed costs.
The combination of the American seed and weed-killer and German medicine and farm-chemical maker would create a global agricultural and chemical giant with a broad array of products.
Farm groups at the hearing testified that they're worried about the consequences of a Bayer and Monsanto combination, as well as other agricultural biotech mergers in the works. The head of the National Farmers Union said if approved, the mergers would mean three companies have more than 80 percent of U.S. corn seed sales and 70 percent of the global pesticide market.
Iowa Senator Chuck Grassley described the mergers as emblematic of a "consolidation wave" he's afraid "has become a tsunami." Grassley urged antitrust regulators to closely watch consolidation of the agricultural biotech industry, noting that mergers between Dow Chemical and DuPont, and Syngenta AG and the China National Chemical Corp. are already under government review.
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250-a-11-(Senator Chuck Grassley, R-Iowa, during Senate Judiciary Committee hearing)-"market becomes anti-competitive"-Senate Judiciary Committee Chairman Chuck Grassley, himself an Iowa farmer, says he's concerned that the wave of consolidation in the seed and agrochemical industries has become a "tsunami." (20 Sep 2016)
<<CUT *250 (09/20/16)££ 00:11 "market becomes anti-competitive"
252-a-14-(Jim Blome, president and CEO, Bayer CropScience LP, during Senate Judiciary Committee hearing)-"limited geographic overlap"-Bayer CropScience CEO Jim Blome says Monsanto has a greater presence in North America while Bayer's business is greater outside of North America. (20 Sep 2016)
<<CUT *252 (09/20/16)££ 00:14 "limited geographic overlap"
251-a-14-(Senator Amy Klobuchar ( KLOH'-buh-shar), D-Minn., during Senate Judiciary Committee hearing)-"of major consolidations"-Senator Amy Klobuchar says she has to wonder if the Bayer-Monsanto merger would result in higher prices and fewer choices. (20 Sep 2016)
<<CUT *251 (09/20/16)££ 00:14 "of major consolidations"
253-a-16-(Robb Fraley, executive vice president, Monsanto Company, during Senate Judiciary Committee hearing)-"more robust competition"-Monsanto executive vice president Robb Fraley says the merger will meet a rising demand for food and agrochemical innovation. (20 Sep 2016)
<<CUT *253 (09/20/16)££ 00:16 "more robust competition"
254-a-13-(Diana Moss, economist and president, American Antitrust Institute, during Senate Judiciary Committee hearing)-"pipelines compete head-to-head"-Diana Moss, president of the American Antitrust Institute, says the Monsanto-Bayer merger will reduce competition. (20 Sep 2016)
<<CUT *254 (09/20/16)££ 00:13 "pipelines compete head-to-head"
255-a-10-(Diana Moss, economist and president, American Antitrust Institute, during Senate Judiciary Committee hearing)-"counter these effects"-Diana Moss, president of the American Antitrust Institute, says the Monsanto-Bayer merger would combine research and development and reduce the company's incentive for competition and innovation. (20 Sep 2016)
<<CUT *255 (09/20/16)££ 00:10 "counter these effects"
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