"The proposed transaction, with a value estimated at $130 billion, would result in the largest biotechnology and seed firm in the United States," Grassley said. "I am concerned that this transaction will decrease the competition in an agriculture sector that has already been subject to a number of waves of consolidation in recent years."
While expressing concern over impacts to possible entries into the market by smaller companies, Grassley said, " I also am concerned that the proposed transaction could adversely impact choice and price of products for farmers and consumers."
Grassley cited several other concerns that he has heard relative to the proposed deal, including that it will alter input markets, vertically integrate traits, seed and chemicals as well as other issues. "I also have heard concerns that the merger will reduce cultivation, chemical and seed choices for farmers, as well as raise prices for them – which ultimately will impact consumers and the food system. Further, I have heard concerns that the proposed merger could curtail critical research and development initiatives which are a significant driver for innovation in the industry."
Given those issues, Grassley said, "I urge the Antitrust Division to conduct a careful analysis of this proposed transaction to ensure that a competitive market in the agricultural biotechnology and seed industry is not impacted in an adverse way, considering the current backdrop of proposed mergers (ChemChina and Syngenta AG) and merger discussions (Monsanto Co. and Bayer AG)."