Analysts assess Monsanto’s next move as consolidation talk heats up

Photo courtesy of Creative Commons
Courtesy of Creative Commons

Following DuPont and Dow Chemicals’ announcement of their $130 billion merger, many have turned their attention to Monsanto, expecting the Creve Coeur-based seed maker to try to keep up with consolidation in the industry.

After Monsanto made three unsuccessful bids for Swiss agrochemical company Syngenta AG earlier this year, some expect the Creve Coeur company to try again.

But PiperJaffray analysts Brett Wong and Tyler Etten wrote in a Dec. 14 note that another Syngenta takeover bid would likely be viewed negatively by Monsanto investors. The analysts pointed out that Chinese agribusiness company ChemChina has made a bid for Syngenta, likely driving up the asking price, and that an acquisition would hinder the stock buyback efforts Monsanto announced in October.

The analysts suggested Monsanto could target Bayer CropScrience — which has said it’s not interested in being bought — or look to be acquired by Bayer.

Read more from the St. Louis Business Journal

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