Corteva Agriscience Inc.’s first day as a stand-alone company is a milestone in an agricultural deal making spree that has left the farm sector more consolidated than ever.
The seed-and-pesticide maker, formed from the 2017 merger of Dow Chemical Co. and DuPont Co., began trading on the New York Stock Exchange on [June 3] as an independent entity ….
Corteva’s debut follows Bayer AG’s $63 billion purchase [in 2018] of Monsanto, the biggest seed company, and Syngenta AG’s $43 billion sale to China National Chemical Corp., commonly known as ChemChina, in 2017.
That consolidation has reshaped the roughly $100 billion global market in seeds, pesticides and biotech plant genes, as low crop prices and trade disputes pressure farmers’ incomes. Some farmers say they worry that fewer providers will lead to higher prices and less choice. Democratic presidential candidates, including Senators Elizabeth Warren and Bernie Sanders, have called for a moratorium on further agricultural mergers and for the breakup of the biggest companies.
Seed makers pursued mergers to combine research efforts and cut costs, as the agriculture industry trudged through a period of low crop prices brought on by big harvests and growing grain stockpiles.
Read full, original article: Corteva Debut Caps Years of Seed Company Consolidation (Behind Paywall)