News: Monsanto invests in Dicamba production

In need of chemistry, the genetically modified company Monsanto is looking for the saving grace of older herbicide molecules. This is understandable: weeds show some resistance to glyphosate.

In parallel, its egotistic management wants to acquire Syngenta for its chemical product range, and will need to divest its seeds business, maybe to BASF, a potential candidate.

This is a double irony: first the paradigm change at Monsanto, and second, they forget (or were never aware) that at the time of merging Sandoz and Ciba-Geigy (1996-7) to form Novartis, Dicamba had to be divested to satisfy competition authorities in the USA and in Europe. BASF acquired this business, together with the Baumont, Texas, factory.

Thus, in the case of a successful Syngenta hostile takeover, Monsanto may be requested to divest their not yet finalized Dicamba investment?

Its hard to see coherence in Monsanto’s strategic turn. It looks more as a desperate move.
Shouldn’t they offer to buy the agricultural division of BASF?
Or of Dow for their good old 2,4-D technology ?

All of this may be a sign that they don’t believe that the Syngenta deal will take place. This would be good news for the shareholders of both companies.

Info source: http://news.agropages.com/News/NewsDetail—15164-e.htm


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