Bayer Makes Steps to Enter Further Intro Crop Science
Bayer, the German multinational company focused on chemical and pharmaceutical industry, recently disclosed that they are very interested in acquisitions, but also partnerships that are focused on the field of crop science. The move comes after the company’s plastic business wing provided a huge financial influx of free assets that can be invested right away. Now, with a reinvigorated investment position and money to spend, Bayer is looking to create a foothold in the increasingly lucrative, although still controversial field of genetic manipulation and modification of crops like wheat, corn and almost everything else that is currently used around the world in agriculture and other industries.
The decision was also spurred only with the collapse of the Monsanto’s takeover of the company called Syngenta in August 2015 when the $46 billion dollar deal broke down. Monsanto, as the biggest global company in the area of crop science, held sway over the market movements, especially when it comes to investments and questions concerning smaller business, but now, the game has changed and Bayer is looking to buy its way into the playing field. Recently, the company declared that they are exceedingly committed to the crop science endeavors they are already involved in, but more importantly, that they are actively looking to add value to it if and when the appropriate opportunities open themselves.
Naturally, these opportunities do not have to appear immediately, mainly because the weakened Monsanto position will likely be exploited by other similar companies as well. But, Bayer has the advantage of being a versatile pharmaceutical conglomerate already, which will aid it in creating new business connections in the domain of crop science. Currently, there is speculation that Bayer is looking into the vegetable seed field of crop science business which was provided by the previously mentioned Syngenta and is valued to be around 2 to 3 billion US dollars. While the company heads are not disclosing any details, it is more than likely that Bayer deemed Syngenta a valid target for the expansion.
In future, Bayer could expand its business substantially with any acquisition from crop science, especially when it comes to its pharmaceutical segment. Here, unlike in the area of modified foods meant for human consumption, where crop science is often meet with rejection and resistance, the creation of new drugs and cosmetic products as a result of crop genetic manipulation is a lot more feasible. This could provide Bayer with an important competitive edge not only in the industry of crop science but also in their offer of pharmaceutical products.