We are in the midst of a race among the world’s biggest agribusinesses to consolidate, driven by the needs of large players in the crop protection and seeds industry to increase economies of scale and production efficiencies. One way to achieve this is to consolidate and reach for synergies.
The race to consolidate was kicked off by Monsanto’s first takeover offer for Syngenta earlier this year; a takeover bid which ended in failure in August after Syngenta rejected Monsanto’s $44.6 billion offer.
The urgency within the industry to merge or acquire has since then been palpable with discussions ongoing between apparently all of the major players. The first to announce a successfully negotiated tie up are Dow Chemical and Dupont, two of the US’s oldest companies.
It seems likely that the next merger or acquisition will be with Syngenta in some shape or form. We know there are at least two active bids on the table. The first is Monsanto, which is understood to be renewing its offer for Syngenta, and the other is China National Chemical Corp (ChemChina).
For more information click here: https://agfundernews.com/dowdupont-kicks-off-the-race-to-consolidation-with-lacklustre-investor-response5163.html