Rep. John Garamendi, D-Walnut Grove, is warning that the planned merger of agribusiness giants Bayer and Monsanto could cost jobs in the Sacramento area.
“This merger threatens jobs in my district and risks significant loss of competition in the seed and agricultural industry, and I believe it deserves close scrutiny by Congress and the Department of Justice,” he said.
Garamendi on Friday wrote a letter urging the Senate Judiciary Committee to scrutinize the merger.
Bayer said it expects to squeeze $1.5 billion in “total synergies” from the merger over three years – which in plain English means the company is anticipating costs savings.
“I am concerned that when Bayer says ‘synergies,’ what they really mean is elimination of facilities in my district that provide high-paying jobs to constituents and services to farmers,” Garamendi said.
The two companies employ hundreds of people in the Davis-greater Sacramento area.
Bayer intends to take over Monsanto in a $66 billion deal that would create a mega-firm controlling about a quarter of the global market for seeds and pesticides. The deal is sure to draw the attention of regulators.
Sean Cockerham: 202-383-6016, @seancockerham