Bayer rolling out the chequebook for monsanto.

[furrowtickler]

Just glad to see companies like FMC, Nufarm and others making inroads with some practical herbicide solutions. The big Chem co's in general have not brought foreward many viable solutions to the herbicide resistance to the farm level. This makes me nervous as we go foreward as to what their end game is.
Group 2 resistance is full bore here now to a point now pulse crops need desperately other solutions or they will be turfed . I know Nufarm is working on some very good crop safe different Chem groups for pulses. I hope it comes soon .
Also sad to see the backlash on clever wich is an extremely effective tool with liberty and cost effective. It has nothing to do with over seas markets as we are being told - this is a push domestically to keep cheap effective herbicides out of farmers hands while the big boys come out with a $25/AC solution to cleavers and other weeds some chemistry is becoming or never was effective on .
This merger , like a few others, is one of the last steps to control crop production - we all can see it coming . Many have noted this on here more than once.
Some grain companies have been trying this path for years now , trying to hook farmers into complete control with inputs and deliveries. It has already ruined a few farms, but kept a few with their heads just above the water.
Then there is the land investors who get puppets to run mega farms all controlled by agroligists and expert marketers . I am not sure where that will all end up.
This is where I have a great respect for the many family or multi family run farms, regardless of size - on their own, who are doing well , in fact much better than the dog and pony shows that are fore mentioned .
Too much power in too few hands is never a good thing .

[Oliver88]

http://www.bloomberg.com/news/articles/2016-07-14/monsanto-s-choice-live-the-dream-with-basf-or-just-cash-out


With a newly sweetened bid in hand from Bayer AG, Monsanto Co.’s board faces a tough choice: Cash out now, or take a riskier route to the master plan it’s pursued for years.
Monsanto has long sought to become a one-stop shop for farmers by boosting its crop chemicals portfolio to complement its seeds business. To that end, it had pursued the purchase of Syngenta AG on at least three separate occasions over the years. While that push failed, the American seeds giant is now in talks to buy BASF SE’s agrochemicals unit, even as Bayer seeks to acquire Monsanto for $54.7 billion.
Last month, Monsanto said year-end earnings would settle at the lower end of guidance. BASF would boost the company’s offerings of fungicides and herbicides, creating a strong market leader in that sector. It could also dilute shares for investors at a time when Bayer’s bid offers a 20 percent premium over Thursday’s settlement.
“If you were hoping to get a lot of cash for your Monsanto shares in short order, you won’t like BASF,” said Chris Perrella, an analyst with Bloomberg Intelligence. “If you liked the Syngenta deal, though, this is going to be the same thing. And you’re going to like this deal even more because it’s a cleaner fit."

So far, investors appear skeptical that either German suitor has what it takes. Monsanto’s shares were down 0.2 percent to $104 at 9:43 a.m. in New York on Friday, well below the value of Bayer’s offer the day earlier for $125, which was $3 a share higher than its initial bid. The open question is whether they’d support the more long-term growth prospects offered by the BASF scenario, or are just waiting for Bayer to push their offer higher.
The price at which Monsanto would be willing to sell is closer to $140 a share, according to PiperJaffray Cos. analyst Brett Wong.

“Monsanto is not a hasty seller,” said Matt Arnold, a St. Louis-based analyst at Edward Jones & Co. “They have good assets they’ve invested for years in, and there’s no reason to sell hastily. They’re making sure they’re adequately compensated, that’s the one thing that’s very clear.”
A deal with BASF means Monsanto could sell farmers a greater offering of crop chemicals along with seeds, helping it compete with industry leaders in the midst of deals that would create seed and chemical behemoths.
Last year, Syngenta sold $8.9 billion in yield-boosting chemicals, Perrella of BI estimates. BASF had $6.1 billion, while Monsanto trailed at $4.8 billion. A deal with BASF would bring Monsanto more products and, potentially, cost savings. Laurence Alexander of Jefferies LLC estimates the synergies from such an agreement would be about 7 percent.
Monsanto’s choice between Bayer and BASF is the latest twist in a prolonged attempt by the world’s top six suppliers of pesticides and seeds to consolidate.
For a Gadfly column on Bayer’s increased offer, please click here.
A three-year rout for crop prices spurred a wave of deals in the industry. Dow Chemical Co. and DuPont Co. announced in December they would merge before breaking into three separate entities, including a Monsanto-sized agriculture company. China National Chemical Corp. said in February it reached a deal to buy Syngenta.
“With DuPont and Dow putting together an integrated seeds and crop chemicals company, Monsanto would stay neck and neck from a competitive standpoint” by combining with BASF, said Jason Dahl, a New York-based senior portfolio manager at Victory Capital Management Inc. “The strategic fit works.”