A combination of Monsanto Co. and Syngenta AG would set the stage for even more mergers and acquisitions.
Monsanto has approached Syngenta about a takeover that would create a giant in the market for seeds and crop chemicals with more than $30 billion in revenue. Getting a deal approved by regulators won’t be easy — and may not happen at all. To address antitrust issues and help its case, Monsanto has planned for a deal to include a sale of parts of the combined business, a person familiar with the matter has said.
The biggest concerns may be tied to what would be an unprecedented market share in soybeans and corn seeds for the combined company.
There is another possibility: At Dow, activist investor Dan Loeb once pushed for a breakup, and Chief Executive Officer Andrew Liveris has suggested the company is open to divesting its agriculture unit.
Whatever the permutations, the agricultural-chemical industry is facing pressure to further consolidate amid slower growth and lower commodity prices, said Lehmann of 3v.
“A Monsanto/Syngenta Deal would mark the beginning of further deals,” he wrote in an e-mail.
The GLP aggregated and excerpted this blog/article to reflect the diversity of news, opinion and analysis. Read full, original post: Monsanto-Syngenta Mega-Merger Would Drive More Deals: Real M&A
