Bayer’s synergy hopes fall on stony ground 24 May 2016 The German pharma group’s stock fell more than $14 billion as it made an approach for U.S. seed maker Monsanto. It’s almost as much as the premium Bayer is offering, and suggests shareholders expect next to no cost savings. The deal looks value destructive, but that seems harsh.
Monsanto may strain to make case against Bayer bid 23 May 2016 A $62 bln all-cash offer from the German titan exploits a cyclical downturn in global agrochemicals. Even if Monsanto’s profit picks up again as expected, however, investors would have to value it considerably higher to match the takeover price. The bird in hand will be tempting.
Agro giants will have to wait for Malthus boost 23 May 2016 Tougher U.S. laws on tax inversions are one reason why Dutch fertiliser group OCI’s merger with CF Industries is off. But with supply outstripping demand, fertiliser prices are also falling. That’s delaying the price hikes that should come from rising populations.
BASF best leaving Monsanto seeds for the birds 19 May 2016 Bayer’s bid for the U.S. seed maker puts its German rival on the spot. Monsanto and BASF work together on research and there are few other potential merger partners. Yet the maths of a $50 bln-plus counterbid would be a stretch. BASF has sat out other big deals; it can again.
Bayer would risk choking on Monsanto 12 May 2016 The $94 bln German chemical giant may be mulling a bid for the U.S. seed maker. Monsanto, worth $39 bln, would need convincing. A deal pitched at a 30 pct premium is financially feasible, but Bayer would need to raise a lot of cash – and deal with clashing cultures.
Monsanto CEO puts M&A-addicted peers to shame 7 Apr 2016 Hugh Grant walked away from buying pesticide company Syngenta last year rather than overpay. Now he’s swearing off the biotech seed maker doing big deals. Choosing organic growth over ill-fitting, frothy tie-ups is a smart move that more bosses ought to put on their to-do list.
India cotton seed spat sows bigger trouble 31 Mar 2016 The government’s move to cap the fees Monsanto can charge for licensing its technology for genetically modified seeds looks short-sighted. It rekindles old fears about India’s cavalier attitude to intellectual property and gives big foreign firms another reason to stay away.
Dow-DuPont deal would be tough nut for interlopers 7 Mar 2016 German chemical giant BASF may be considering a counterbid for U.S. rival DuPont. The price would have to include a whopping premium – and cover a $1.9 bln break fee. The tax benefits alone could make the agreed-upon $130 bln union and spinoff with Dow Chemical close to ironclad.
Brexit more complex than big versus small business 24 Feb 2016 The assumption is listed firms will vote to stay in the EU, while red-tape-throttled small firms will not. But only a third of the FTSE 100 signed a letter backing Brexit. A glance at UK farms’ subsidies, labour and low tariffs suggests many small firms will vote to remain.
Baltic Dry’s economic compass looks wet 16 Feb 2016 The indexed cost of shipping grains and minerals has hit record lows. While its prescience in 2008 may renew fears of a sharp global slowdown, the Baltic Dry has become a far less reliable health indicator. China’s troubles are partly to blame for the fall, but so are too many ships.
ChemChina can reap rewards of new stance on GMOs 4 Feb 2016 Buying Syngenta will thaw China’s hostility towards genetically modified organisms. Nationalist fears about food safety will ring hollow once the seeds are in Chinese hands. The buyer will be able to push into a huge new market – but so, in time, will rivals like Monsanto.
Syngenta up against element of regulatory surprise 3 Feb 2016 The Swiss seed maker says its $43 bln sale to ChemChina shouldn’t raise U.S. national security fears, despite hot-button facets like chemicals, food and China. Yet Philips’ blocked lighting-unit deal shows Uncle Sam can veto without explanation. That’s reason enough to be wary.
Syngenta deal has two big winners, 1.4 bln losers 3 Feb 2016 ChemChina’s $43 bln cash takeover of the Swiss seed maker won’t involve job cuts, management sackings or cheeky tax reduction. Great for Syngenta shareholders and employees; not so for the buyer. Fortunately, the cost is spread widely – among China’s unwitting savers.
ChemChina’s Syngenta bid is prickly for Monsanto 2 Feb 2016 The state-owned group is nearing a $42 bln deal for the Swiss seeds and pesticides group. The cash and friendly nature make it better than a similarly valued offer from Monsanto. The U.S. company could improve its bid or turn its attention to BASF. Neither M&A option looks easy.
China catalyst could spark Syngenta chain reaction 13 Nov 2015 The Swiss pesticides group has rejected a $42 bln bid approach from China National Chemical Corp, reports say. Interest from rival Monsanto was rebuffed earlier this year, and last month the Syngenta CEO stepped down. It looks vulnerable to a round of chemical re-engineering.
Syngenta CEO exit opens door to opportunists 21 Oct 2015 Mike Mack will leave the $30 bln Swiss agrochemical company. Shareholders grumbled that the company fumbled a bid from Monsanto. New leadership may be more credible than Mack in cutting costs. Meanwhile, Syngenta looks more open to a bid or a breakup.
Monsanto plants seeds for weathering rough times 7 Oct 2015 Weak grain prices and forex swings battered the crop giant’s earnings, bringing a lower 2016 forecast just weeks after its Syngenta bid collapsed. The whole sector is down, though, and a faster stock buyback and $300 mln of cost cuts will help the company through a lean period.
Monsanto leaves Syngenta facing awkward questions 26 Aug 2015 The world’s largest seed maker has given up pursuit of its Swiss rival. The $46 bln deal required aggressive assumptions and carried risks. Syngenta’s management now needs to prove its reluctance to talk was worth it.
Monsanto $46 bln Syngenta offer deserves a hearing 26 Aug 2015 The U.S. seed giant’s last cash and shares approach to its Swiss rival was rebuffed. Monsanto has offered a little more, but can’t go much higher without destroying value or relying on rosy assumptions. The pressure is on Syngenta to talk, or show investors it has a better plan.