Top 5 Mergers and Acquisitions in Global Agrochemical Industry

Jan 30th, 2018

In the year 2017 six largest global chemical companies which give pride of place to crop protection, seed farming and R&D in the agricultural industry – BASF, Bayer, Dow, DuPont, Monsanto and Syngenta – morphed into four enterprises. As a result of a merger, global chemical and agrochemical market has four players: BASF, DowDuPont, Bayer – Monsanto, and ChemChina-Syngenta.

Mergers and acquisitions took place at the global agricultural engineering and digital technology markets, the most notable of which was John Deere and Blue River merge, and Sumitomo Chemical’s takeover of Botanical Resources Australia Ltd (BRA). The M&A rush has also reached a number of the U.S. farmer cooperatives which believe that pooling the interests will enhance their efficiency.

The top five M&A deals of the year look like this:

  1. Dow and DuPont, the two equally strong companies, now have the name DowDuPont that integrates Dow AgroSciences, DuPont Pioneer and DuPont Crop Protection. DuPont has lost the portion of its plant protection portfolio to get the approval of the foreign and the U.S. regulatory authorities.
  2. Bayer and Monsanto are concluding the deal in January 2018. The companies complement each other having common interests in corn and soy cultivation plus significant wheat selection innovations. However, to avoid problems with the antitrust law Bayer had to sell its LibertyLink technology and some valuable seeds to BASF. The executives of the companies assure the customers that the integration will be smooth.
  3. Syngenta and ChemChina have recently merged. The unique feature of this deal is that ChemChina is a state-run enterprise that aggressively takes over smaller agrochemical businesses. In 2011 it acquired an Israel agrochemical company Makhteshim Agan Group for $2, 4 billion.
  4. AGCO, a global manufacturer of agricultural equipment, is acquiring Precision Planting aiming to turn into a major player in the DT field and be a full partner to farmers around the globe.
  5. DuPont has signed the purchase agreement with Granular, a U.S. software and technology expertise supplier. This acquisition will allow DuPont to promote its ideas for the digital development of the Argo industry with the help of analytical and data sources.

The experts say that M&As have rather positive than negative effects for the agricultural and agrochemical sectors. The companies get the access to Research and Development which is a significant benefit for their advancement as they would not achieve strong performance in this area all alone.