Sector News

Monsanto talks acquisitions of Bayer, BASF crop units

March 23, 2016
Energy & Chemical Value Chain

Monsanto is once again looking to bolster its agriculture business through deals with European chemical giants, according to multiple reports.

The St. Louis-based seed and pesticide producer last year made multiple bids to acquire Swiss rival Syngenta only to be rebuffed each time.

Amid a continued wave of consolidation in the industry, however, Reuters reported that Monsanto discussed a possible transaction with Bayer, while Bloomberg added this week that Monsanto also talked with fellow German company BASF.

Syngenta was long seen as a potential target for corporate inversion by Monsanto — a controversial practice that allows U.S. companies to incorporate in lower-tax nations. Officials with the Swiss company responded that the bid undervalued the company; it eventually agreed to a sale to China’s state-owned ChemChina.

Monsanto nonetheless hoped to pursue additional consolidation amid high industry inventories, lagging currencies and struggling commodity prices that hindered spending by farmers.

Reuters reported that the sale of Bayer’s crop science unit could fetch more than $30 billion. Bayer is second to Syngenta in the crop protection market and would fit with Monsanto’s seed business, the world’s largest.

Monsanto was also reportedly open to discussions about joint ventures with Bayer. The German company is not actively shopping its crop division, but further meetings are reportedly scheduled for next month.

Bloomberg, meanwhile, reported that BASF, the world’s largest chemical company, was Monsanto’s preferred merger target.

Their recent talks surrounded two crop science units — including a division focused on cotton production — and could also include either outright purchases or joint ventures.

By Andy Szal

Source: ChemInfo

comments closed

Related News

March 24, 2024

Thomas Gangl leaves Borealis

Energy & Chemical Value Chain

Appointed Borealis CEO in 2021, Thomas has led key initiatives including the sale of the nitrogen business, acquisitions of Rialti Spa and Integra Plastics AD, and Borouge’s IPO. He also made the final investment decision for the Borouge 4 plant, set to be the world’s largest polyolefin complex.

March 24, 2024

Chemours names Dignam permanent CEO

Energy & Chemical Value Chain

The Chemours Co. today named interim CEO Denise Dignam as the company’s permanent CEO and president, as well as a member of the board of directors, effective immediately. Dignam has been interim CEO since late February, when former CEO Mark Newman was placed on leave due to an internal investigation.

March 24, 2024

Neste merges three business lines into new Renewable Products unit

Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has completed its organizational change process, announced on 1 November 2023. Neste informed that it will merge its three renewable business units into one Renewable Products business unit as well as restructure its functions to better support business-driven ways of working.

How can we help you?

We're easy to reach