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Agribusiness Mergers Becoming A Concern

We continue to see more mergers and acquisitions in the ag industry resulting in bigger, but fewer companies serving farmers. 
 
Just this week we see the Canadian companies, Potash Corp and Agrium, announcing a merger which will make the new company the dominant player in the fertilizer industry. 
 
Meanwhile German based Bayer is buying Monsanto. 
 
Jean Payne, President of the Illinois Fertilizer and Chemical Association says the cost of bringing new seed and chemical products to market is driving the consolidation.
 
 
But are these mega mergers good for the farmer? They will give the companies the needed size and capital to innovate new products, but will they control so much of the market that competition is stifled?
 
 
Both of these mergers will need approval by the US, European and in the case of the fertilizer merger Canadian approval before moving ahead. The question facing the regulators is whether or not these mergers trigger anti-trust laws.

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