Bayer rolling out the chequebook for monsanto.

[buzz]

Some serious poker playing going on here.
Not sure I like seeing the number of seed and chem companies shrinking at this rate.
DuPont and Dow mashing together as well.




Monsanto all-cash offer increased to USD 125 per share on July 1 after additional information received in private discussions / Bayer has comprehensively addressed Monsanto’s questions concerning financing of the transaction / In addition to certain commitments to regulators possibly required, Bayer has offered a USD 1.5 billion reverse antitrust break fee, reaffirming its confidence to successfully close / The revised offer retains compelling value creation potential for Bayer shareholders / Bayer remains fully committed to pursuing this transaction

[farmaholic]

.....like there was any "competition" between the two giants in the canola seed market anyway.

[ajl]

Looks like Bayer is completely confident it can raise seed and chem prices enough to pay for this. Just like when the equipment dealerships merged parts prices took off.

[bucket]

Some good a competition board does?

Allow companies to become monopolies within their industry....we are beginning to look a little slow on that front...turns out we were ahead of our time?

[farmaholic]

Something to think about....

How many shares would you have to own and receive dividends from to offset what this might end up costing us in the end because of a near monopoly on canola seed costs?

Remember the dual herbicide tolerant canola that is just waiting to hit the market... As I said before, first they will sell you the "problem" then the "solution".

[bucket]

Dual herbicide canola aka super weed.

[farmaholic]

.......because comments are made about joining them if you can't beat them or somehow getting some of your money back.

Geez. ...so own Chem Co shares, railway shares, machinery Co shares.....will I have any capital left to operate my own Co? Or should I just sell he farm and live off Dividends....could it be any riskier than what I'm doing now?

[sk_wheatking]

Guys are so worried about Chinese investors buying land but that's not going to be the problem in the future. These grain/chemical companies will eventually control all of ag. They will make it so cost prohibitive to operate that they will have all the land they want. Then they will hire you to look after it.just a minute, aren't they doing that now, with absolutely no risk to them?

Shit.

[farmaholic]

Don't worry bucket...if they don't already have one, they are working on a "SOLUTION"!!

pun fully intended.

A neighbor grew soybeans last year, on the same field he grew them again this year(apparently it's the thing to do). Last year it was a beautiful "clean" crop. Not so much this year, RR canola galore, probably "afew" RR plants went to seed in the soybean crop last year and this year it looks gross.

I use enough glyphosate on this farm...I don't want to use it two times for in crop weed control as well!

[Rareearth]

A great question, seems to be a dangerous - high risk time to buy into the stock markets. That and the commodity markets are where all the easy/ liquid money goes for yield, bonds won't do it. If one is wanting to hedge farm inputs maybe wait for a market melt down, black swan to buy into Bayer. Currently fert companies are a bigger piece of the expense pie and might be a better buy, and that commodity is going through a price reset now, maybe in another year or two after droughts and lower demand would be good timing? With future seed and chem technologies Bayer is likely a better long term.
It's all about timing.
This is where Cottons insight was nice.
If a farm does have discretionary income, what is the best investment? Land, equipment(work life balance),oil/gas, markets,?

[Rareearth]

[ATTACH]429

I'll get pic right next time

[tweety]

Monsanto the company doesn't sell seed. Dekalb does. Intacta does. Monsanto is a technology company. It will be quite interesting who gets spun off to where and how globally a company is forced to operate in each country.