Baysanto? Monsantayer?

Whatever they end up calling themselves, Bayer and Monsanto have finally crossed the last big regulatory hurdle in the way of their proposed merger. The US Department of Justice gave Bayer permission to go through with the $62.5B deal on Tuesday. It’s one of the largest mergers on record (list of those here), and the new company will have control of over 25% of the world’s seeds and pesticides. Get ready for a future where Mbayto branded trees litter the landscape. The companies claim that the merger will allow them to increase spending on R&D, but Business Insider reports that they’ll only really be spending about $500M more than when they were separate. With that much of the market cornered there’s probably a better reason the deal will benefit the companies…

5. This week in GMOs (Giants Merging Opulently)

The agribusiness behemoth Monsanto has accepted Bayer AG’s $66 billion takeover bid. The offer will be the largest all-cash deal to ever take place… if Bayer can get past regulatory hurdles in about 30 different jurisdictions. If it can’t, Bayer has to pay Monsanto $2 billion to make up for it. The deal would put Bayer in control of more than a quarter of the world’s seed and pesticide supply. This means Bayer’s biggest business is now agriculture-based, not healthcare. Could this mean less involvement in pharmaceuticals for Bayer? Most of that $66 billion came from bank loans and, as any college grad knows, owing the bank a lot of money means less cash to buy drugs.