Crop Protection Suppliers: Rumor Has It
November 2, 2015 A few weeks ago, pop singer Adele debuted a new song for the world to hear. For those who might not be in the know, Adele burst onto the music scene a few years back with such pop hits as “Rolling In The Deep” and “Rumor Has It.”
Given the recent news on the crop protection manufacturer front, this latter song title could easily be applied to the agricultural market. By now, virtually everyone is aware that two of the Big Six crop protection/seed companies – Monsanto and Syngenta – were locked in a proposed acquisition dance throughout most of the summer months. This deal ultimately didn’t happen (which reportedly caused the resignation of Syngenta CEO Michael Mack, effective the end of October), but questions about how long Syngenta will remain its own company remain.
And last week, two more owners of Big Six companies – Dow Chemical, which owns Dow AgroSciences, and Dupont, owners of DuPont Crop Protection and Pioneer Seed – were also reportedly considering selling their agribusiness interests.
Loading ...“The company will review all options with a best-owner mindset, with a focus on creating new synergies in a consolidating agricultural market,” wrote Dow Chemical in a released statement. “The company is considering only those prospects that will extract further value from this highly attractive and well-positioned business and return significant value to its shareholders.”
DuPont’s interim Chief Executive Edward Breen made a similar claim. “We will do what’s right for our shareholders to create value for them,” he said.
Right now, rumors are flying fast and furious on which of the Big Six crop protection players will be making bids for their rivals, with little concrete evidence which direction each agribusiness might end up going. But given this kind of “sell now” environment, any rumor is likely to receive quite a bit of attention.
Stay tuned . . .
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