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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Take some profits.
-
Average pension pot by region – how do your retirement savings compare?Making sufficient savings for retirement is critical to ensure you can enjoy your later years without too many financial worries, but new data suggests some are saving far more than others. We look at the average pension pot by region.
-
Could colour diamonds add a sparkle to your portfolio?Diamonds of various shades never go out of fashion, says Chris Carter
