Bayer testing waters for Monsanto takeover

May 19, 2016

Monsanto confirmed it received an offer

By Diego Flammini
Assistant Editor, North American Content
Farms.com

Bayer has made an offer to acquire Monsanto, which could create the world's largest supplier of seed and pesticides.

In a release dated May 18, Monsanto said it "received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto," and that the company’s executives are reviewing it.

A takeover of Monsanto could strenghten Bayer's place in the agriculture business totem pole.

"The proposed combination would reinforce Bayer as a global innvation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business," Bayer said in a May 19 statement.

Bayer Monsanto

Both companies have said there will be no further coments at this time.

Some of the world’s largest agribusinesses have been busy attempting and accepting takeover bids within the last year.

In 2015, Monsanto attempted to buy Syngenta; the deal was rejected before Syngenta accepted a $43 billion offer from ChemChina in February. The deal is still being reviewed by U.S. regulators.

Also in 2015, Dow Chemical and Du Pont merged to create DowDuPont, a company worth an estimated $130 billion.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!