President-elect Donald Trump met with the chief executives of German chemical giant Bayer and agriculture company Monsanto [during the week of January 10] and discussed commitments to the U.S. following their planned $66 billion merger. The Trump team says as a result of the meeting, the companies made new pledges for jobs and research spending in the U.S.
Analysts say not so fast.
…[T]ransition team spokesman Sean Spicer [said] none of this … had been in the works previously.
Some of that has analysts scratching their heads. When the companies announced the proposed deal in September, they said the combined agriculture business would have its global Seeds & Traits and North American commercial headquarters in St. Louis.
“St. Louis … has been the plan from the start,” Bernstein analyst Jeremy Redenius said….
The research spending, as well, doesn’t appear new, Redenius said….
. . . .
“The thing the U.S. government is concerned about is jobs,” Bernstein analyst Ronny Gal said Tuesday. “… what they’re really saying is: ‘We are going to commit to spend a certain amount of money on U.S.-based research.’ ”
Would they have done that anyway?
“Some of it,” Gal said. “For sure.”
The GLP aggregated and excerpted this blog/article to reflect the diversity of news, opinion and analysis. Read full, original post: Bayer, Monsanto tout jobs, investment pledge to Trump, but analysts question how much is new