Chapter 455: Potential Conflicts; The Big Six Becomes the Big Four
Not surprisingly, the negotiations collapsed.
Monsanto offered an impossible price: $120 billion. Qu Yang believed that it had to be at least half that to barely match its true value.
But Brett disagreed. He agreed to make concessions, but insisted that the assets to be divested were worth more than $100 billion!
There is a difference of 60 US dollars between 100 billion and 40 billion. Five years ago, it could buy 5 Saint Nice Seed Industries.
The Senais has appreciated in value, and its other assets are good, but it's not worth the price.
"It's really greedy, evil Monsanto."
When the group walked out of Monsanto's circular building, Qu Yang looked back at the Monsanto logo.
This company has a history of more than a hundred years and has left countless traces in history as well as faced many troubles.
Although these troubles have been suppressed by Monsanto's powerful legal, administrative and public relations means, they have been accumulating and accumulating, and will eventually explode.
Qu Yang took out the cigarette box and just as he took out a cigarette, Bai Zhian's voice came over.
"You shouldn't have brought this fool with you!"
"Idiot? Who are you talking about?"
Bai Zhian pointed at Yang Xiaowu who was following behind him. Qu Yang was holding a cigarette in his mouth. The warm spring sun shone on his bald head, reflecting a cold light.
The others were still listening to the conversation between the two, but a lighter suddenly helped Qu Yang light the fire. It was Yang Xiaowu.
Qu Yang smiled, "He is not a fool."
“But it was because of him that Monsanto turned us away, and Brett offered an impossible price.”
"Are you trying to say that because he shook his hair, it irritated Brett who had no hair?" Qu Yang blew out a smoke ring, "That's ridiculous."
"The hair-twisting is just one aspect. His attire and his mental state do not look like someone who is here for business negotiations."
"None of this matters. Monsanto never even thought about selling its assets to Tianhe."
"No, there was still a chance, but this idiot ruined everything!"
Bai Zhian looked at Yang Xiaowu fiercely, and the latter looked back at him without backing down.
This made Qu Yang, who noticed this scene, even more curious about Yang Xiaowu. In fact, no one really understood Yang Xiaowu.
"It has nothing to do with him." Qu Yang curled his lips and said, "Whether he is there or not, Mengsandu will blackmail Tianhe."
"I'll tell my boss about this."
"Whatever you want." Qu Yang put his arm around Yang Xiaowu's shoulders and got into the car first. "You can tell the boss that this is my brother."
"I will."
In the car, Yang Xiaowu was a little absent-minded, "Is it really okay?"
Qu Yang opened the car window, stretched his hand out of the window to shake off the cigarette ash, and the cold wind blew on his body, making it painful.
“Do you know Monsanto?”
"No one in our profession doesn't know about Monsanto. In this city, apart from the nuclear waste pollution in the north of the city, Monsanto is the most resisted by ordinary people."
“It has a bad reputation, right?”
"Yes."
"That's no problem." Qu Yang smiled, "Tianhe wants to be a clean seed company. This is the best weapon to kill Monsanto."
Yang Xiaowu seemed to have heard something incredible. “Many people around the world want to get rid of Monsanto, but no one can do it. In fact, it is still alive and well.”
Qu Yang asked, "Are you interested in joining us?"
“Kill Monsanto?”
"Cool, right?"
"I don't think it's cool." Yang Xiaowu shook his bangs, "But I'm willing to join in, not because it's cool, but because of gratitude."
"grateful?"
Yang Xiaowu pondered and said, "Thank you Tianhe for taking care of my family over the years. Not only did it relieve me of my worries, but it also helped me find the best school."
"this is necessary."
In fact, Qu Yang knew nothing about it. He thought that the boss had arranged someone to do it. It must be said that this was very useful for Tianhe North American branch.
"Go to Springfield and take Xiao Wu to meet Li Yang."
"Do you want to talk to Mr. Bai?" asked the assistant sitting in the passenger seat.
Qu Yang smiled and said, "No, he should be reporting everything that just happened to the boss."
He was eager for Bai Zhian to report and was not worried at all about it. Bai Zhian joined Tianhe midway and was recommended by a leader.
This meant that he was destined to not be able to enter Tianhe's core circle.
First of all, the concepts are not consistent. It is not Golden Harvest’s style to worship foreign things.
Furthermore, it is impossible for the boss not to remember Yang Xiaowu. Given his emphasis on the anti-counterfeiting team, if he knew Yang Xiaowu’s current situation, he might be happier than him.
Several cars were speeding along the highway.
Bai Zhian also followed immediately. North America is the world's largest seed market. This is also his first time in North America, so he couldn't give up on learning more about it.
As for reporting, he could do it in the car. Even with several colleagues present, he recounted the "crimes" Qu Yang committed in St. Louis without changing his expression.
"A young foreign student who looks like an idiot? What's his name?"
"Yang Xiaowu." Bai Zhian suggested: "If we let him apologize to Brett in time, maybe we can still save the relationship..."
"No need." Guo Yang's voice came faintly, "This is Monsanto's loss."
Bai Zhian was stunned on the spot.
This seems a little different from what he thought, this is Monsanto!
Once the acquisition is successful, Tianhe will achieve a counterattack, break the suppression of foreign companies in agriculture and seeds, and become a true multinational giant!
"How can I give up..."
Amid Bai Zhian's confusion along the way, the convoy finally arrived at Tianhe's branch in Springfield.
Qu Yang took Yang Xiaowu to meet Li Yang, and they visited the factory, laboratory, and breeding farm together. In the end, Yang Xiaowu got Li Yang's recognition.
His appearance is so deceptive that people subconsciously ignore him.
In fact, such a person would be more suitable to work for Monsanto, but Yang Xiaowu has already appeared at Monsanto, so this approach is not feasible.
But with his knowledge and the resources he has accumulated at the University of Washington, he can be of great use at Tianhe.
At the same time, on a vacant lot on the outskirts of Jiayuguan, Guo Yang also murmured, "Yang Xiaowu... I really didn't expect it."
In fact, the arrangements for Yang Dawu's funeral had always been made by Wei Guan, and Guo Yangshao had no regard for it.
After accidentally learning about Yang Xiaowu's news, he immediately contacted Wei Guan and learned about Yang Xiaowu's current situation.
It's really surprising.
Although the University of Washington is not in Washington but in St. Louis, it is not a fake university but a famous one.
He thought of a small hill in Longnan where Yang Dawu was buried.
At that time, Guo Yang promised his parents a house in the county town, one million yuan, and to support his younger brother Yang Xiaowu's studies and future work arrangements. Unexpectedly, by chance, a talent was cultivated.
As for Bai Zhian, Guo Yang was indeed a little disappointed. Although he joined Tianhe midway, it had been several years, and there were many people like him in Jiahe.
Because many of Jiahe’s senior executives joined the company through recommendations from headhunters and relevant departments.
Some hidden dangers have already emerged.
It’s just that Jiahe didn’t have any replacement candidates before, and recruiting new people might be worse.
But now that the leadership plan has been implemented for so many years, it is not a bad idea to promote a group of backbones to high positions...
"Are you distracted again?"
A pair of slender pink hands waved in front of Guo Yang.
"Uh…"
"I noticed that you always have trouble concentrating."
"There are so many things to do. There's nothing we can do." Guo Yang held Lin Keqing's hand and said, "How is this piece of land? Is it okay?"
"Isn't it too big? It must be tens of thousands of square meters!" Lin Keqing said.
This is the land that Guo Yang used to build the manor. It is also on the bank of the Taolai River, not far from Jiahe’s headquarters, and is located within the planned new urban area on both sides of Jiayuguan.
The reason for choosing Jiayuguan was also for safety reasons.
The people here have a relatively high level of cultural education, the urban population is smaller, and the population is relatively less complicated, making it a more suitable place to settle down.
Guo Yang smiled and said, "It's not big. I want to ride a horse in the yard, but I can't do that unless it's bigger."
Lin Keqing pouted. There was still a gravel beach in front of her. She really couldn't imagine the scene of riding a horse.
"That's it." Guo Yang said, "I'll find someone to design it, and you just focus on it. By the way, is there anything else you're interested in?"
Lin Keqing frowned and thought for a while.
She certainly had no hope of getting involved in Jiahe's core business, and she had never thought about it, but it was also quite boring to just focus on renovating the house.
"Why not let me take care of the rooftop farm?"
"Row."
The decision to build a house was made. Lin Keqing said it was too big, but in the following days, he devoted all his attention to it.
...
"Monsanto acquires Syngenta, reshaping the global agrochemical landscape: the Big Four!"
On March 3, the Senate Judiciary Committee held a hearing on mergers and competition in the U.S. seed and agrochemical markets.
Representatives from Dow Chemical, DuPont Pioneer, Syngenta, Bayer, and Monsanto debated with several senators, as well as representatives from the American Antitrust Association, the American Farmers Union and other organizations.
Currently, both transactions are awaiting decisions from the U.S. Department of Justice, the Federal Trade Commission, the Senate Judiciary Committee, and the Antitrust Subcommittee.
Just a year ago, the global agrochemical and seed industry was still dominated by six giants.
Six companies including Monsanto, Syngenta, Bayer, Dow Chemical, DuPont Pioneer and BASF ranked at the top.
Among them, Monsanto and DuPont Pioneer have advantages in the seed industry, Syngenta and Bayer rank first and second in agrochemical business respectively, and Dow and BASF are strong in specialty chemicals.
However, in the past few months, two large-scale mergers and acquisitions have occurred in the global agrochemical field.
Dow Chemical and DuPont, Monsanto and Syngenta.
The biggest obstacle facing them has always been antitrust investigations.
Because these four companies have strong foundations in seeds and pesticides and their business areas overlap, the merger will intensify vertical monopoly.
The chairman of the Senate Judiciary Committee bluntly stated that he was worried that the merger of giants would lead to a vertical monopoly in seed and pesticide products, which would increase prices and weaken competition and innovation.
The president of the Federal Farmers Union even stated at the hearing:
“After the two mergers are completed, the formed company will occupy 80% of the federal corn seed market share and 70% of the global pesticide market share, which will lead to fewer choices for farmers, higher product prices, and less innovation and research and development.”
"Over the past decade, dozens of independent biotech and seed companies have been bought and acquired by these agrochemical giants, which has led to the current situation where six large multinational companies dominate the industry."
"If the capital market's forced abortion of technological innovation has little impact on ordinary farmers and mass consumers, then the price increase of all agricultural production factors caused by the monopoly of giants will directly affect our daily lives."
“Studies have shown that global seed prices will rise after the merger of giants.
The price of cotton seeds, in particular, may be 18.2% higher than the current level, because Monsanto and Syngenta control 70% of the cotton seeds in the global market.
Corn, soybeans, and vegetable seeds will also face varying degrees of price increases.”
In response to the above questions, the giants responded at the hearing: "The merger is conducive to strengthening business synergy and reducing costs, which will not only help increase R&D investment, but also help control market fluctuations."
At the same time, in order to respond to antitrust investigations, DowDuPont has successively divested redundant assets.
In order to successfully acquire Syngenta, Monsanto also divested a large number of businesses.
Most of these divested businesses were acquired by Bayer and BASF, and Bayer and BASF are also strengthening integration, but there is no intention of merging.
One took over the agrochemical business and the other took over the chemical business. Bayer and BASF are also expanding rapidly.
The integration of these giants has brought unprecedented changes to the agrochemical industry.
The above is from a report from abroad reprinted by China Business Network.
The global agrochemical landscape has changed from six giants to four giants: DowDuPont, Monsanto, Bayer, and BASF.
The monopoly structure has been further compressed.
This has caused a huge stir in the global agricultural chemical industry. For farmers, the merger of these giants is like a tsunami that may destroy the land on which they depend for their survival at any time.
Guo Yang also saw the report from China Business Network and he could feel the unrest within the group.
Because Jiahe gained nothing from Monsanto's acquisition of Syngenta.
On the contrary, Sinochem gained something, as Monsanto's global vegetable seed business (Signac Seeds) was eventually acquired by Sinochem's China Seed Group.
This result is hard for many people in Tianhe to accept.
For example, Bai Zhian put a lot of effort into this, but in the end his old employer easily snatched away the deal.
For this reason, he lost his temper in Tianhe and complained to Guo Yang about Qu Yang many times.
What surprised Guo Yang was that there was no mention of corruption in the report.
This is actually a bit incredible.
Seeds are agricultural production materials with higher profits, and Tianhe’s profits are even higher. It is actually very easy for people in power to do something about it.
Guo Yang also didn't think that the people below would be spotless.
However, no matter how dissatisfied Bai Zhian was with Qu Yang, he never mentioned corruption.
This is interesting. Is it that Qu Yang sticks to his principles, or that his methods are too sophisticated, or is it that Bai Zhian is not clean either and doesn't want both sides to suffer losses?
The possibilities are many.
But Guo Yang does not plan to deal with internal affairs for the time being, as the pressure from outside is obviously greater now.
In the process of the six giants becoming the four giants, Chinese enterprises can be said to have gained nothing.
(End of this chapter)