The agrochemical sector, which makes seeds and pesticides, has come alive with mega-deals. Last week, German chemicals giant Bayer, which specialises in herbicides, launched a $62bn bid for US-based Monsanto. This follows a $130bn merger last year between Dow Chemical and DuPont, two American chemical giants, while ChemChina has launched a $43bn bid for Switzerland's Syngenta.
Still, obstacles to this deal are manyfold. Monsanto has rebuffed Bayer's bid, which already looks pricey. Even if Bayer offers a higher price, US regulators could halt a deal: they intervened in 2007 when stopping Monsanto from buying a rival cotton seed producer, on the grounds that the combination would be too big, squeezing US farmers. So investors in Monsanto shouldn't bet on a higher offer.
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