Rumors have once again heated up around the idea that Monsanto (NYSE:MON) is trying to acquire its rival Syngenta (NYSE:SYT).
To a certain extent, this is nothing new. Syngenta has long been
thought to be a future M&A candidate, with past rumors tying them to
Monsanto, DuPont (NYSE:DD), and Dow (NYSE:DOW),
but the company's less-than-impressive run of performance (including a
poor first quarter in 2015) has apparently reignited those speculations.
As
a Monsanto shareholder, I'm hoping the company does not execute this
deal. While I like the idea of Monsanto gaining more exposure to
vegetables and crops outside of the corn/soy complex, as well as access
to Syngenta's technology and diversification into the ag chemical
business, I think Monsanto would be hard-pressed to earn a good return
on the price paid, particularly after factoring in divestments and the
probable reinvestments that need to be made into Syngenta.
Read more here:
Monsanto Doesn't Need Syngenta
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