St. Louis, Missouri area-based Monsanto has been an American institution since its inception (and it’s been a sordid one to say the least), but the company recently had its eyes on leaving for greener pastures.
By greener pastures we of course mean more money, in the form of a “tax inversion” that could have saved the genetically engineered seed and agrochemical giant large amounts of cash over the long haul by allowing it to ditch U.S. tax requirements; the proposed deal also would have led to the reestablishing of its headquarters in the UK.
The tax inversion process has become a go-to move for large corporation seeking tax havens outside of the United States, by moving their operations elsewhere.
Monsanto’s plans hinged on efforts to acquire Switzerland-based Syngenta, which would have allowed the two companies to merge and “re-shape the global market for seeds and pesticides,” as this article from the Wall Street Journal noted.
But after four months of doggedly pursuing a deal, and throwing $46 billion in cash at the Swiss GMO giant, Monsanto has officially thrown in the towel.
Monsanto CEO Hugh Grant expected a deal would eventually go through with Syngenta. PHOTO: NationofChange.com
Facing protests both at home and abroad, the spotlight has been white hot on the Monsanto Company as of late.With millions Marching Against Monsanto over the past few years and companies and farmers ditching GMOs, the company is seeking new ways to expand its foothold and to increase profits.
Monsanto CEO Hugh Grant sounded 100% sure that the deal with Syngenta would eventually go down (given enough cash), but now Monsanto has been left holding the bag.
The company has been spending millions to prevent mandatory labeling in the U.S., culminating in a new bill (HR 1599, also known as the DARK Act) that would actually ban mandatory GMO labeling at the state level (click here to learn more or get involved).
But such tactics can only work for so long in obscuring the truth which is perhaps why Monsanto is becoming so aggressive in expanding its operations and buying the competition.
Following the collapse of the deal, the Wall Street Journal had its own predictions as to what Monsanto may do next; you can click on the original article for more information.
Some of Syngenta’s stockholders are also reportedly upset at the company’s decision to “throw away” billions of dollars for shareholders in rejecting the Monsanto deal.
Whatever happens, it’s worth noting that the Swiss company, the world’s largest pesticide seller, has a dark history similar to Monsanto that makes you wonder if perhaps these two companies do go together after all.
Nick Meyer writes for March Against Monsanto and the website AltHealthWORKS.com.
http://www.march-against-monsanto.com/ambitious-monsanto-plan-to-avoid-paying-u-s-taxes-ends-in-failure/
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