You are here: Home » Business (page 3)

Category Archives: Business

Feed Subscription

Monsanto accepts sweeter bid from Bayer

The US seed and pesticide giant Monsanto has agreed to an improved takeover bid from the German pharmaceuticals manufacturer Bayer. The multi-billion-dollar deal will create the world's biggest crop seed producer. German chemicals giant Bayer said on Wednesday it had signed a $66 billion (58.8 billion euros) takeover deal with US genetically modified (GM) seeds firm Monsanto. "Bayer and Monsanto have signed a binding merger agreement that enables Bayer to take over Monsanto for $128 per share," the firms said in a statement. Bayer repeatedly increased its offer to Monsanto since its first $122-per-share bid in May, but the US firm had until now held out for more cash. Top managers at St. Louis-based Monsanto approved the sale to Bayer at a meeting on Tuesday. Bayer reportedly agreed to double the so-called "anti-trust break fee" to about $2 billion that it would pay Monsanto if authorities did not approve the purchase, according to Bloomberg. The deal stands to be the biggest-ever acquisition by a German company. It would create a new global leader in genetically modified seeds and pesticides. Bayer makes a wide range of crop protection chemicals, while Monsanto is known for its seeds business. The transaction is still pending final approval from regulatory bodies in Europe and the US.

The US seed and pesticide giant Monsanto has agreed to an improved takeover bid from the German pharmaceuticals manufacturer Bayer. The multi-billion-dollar deal will create the world’s biggest crop seed producer. German chemicals giant Bayer said on Wednesday it had signed a $66 billion (58.8 billion euros) takeover deal with US genetically modified (GM) seeds firm Monsanto. “Bayer and Monsanto ... Read More »

US, Cuba launch regular commercial flights

After a gap of over 50 years, regular air services between the US and Cuba are resuming, underscoring the mending of ties between the two erstwhile Cold War foes. There are many unresolved issues, though. The year 1961 witnessed a number of historical events, including the start of the construction of the Berlin Wall and Yuri Gagarin's first human space flight. But it was also the last time there was a direct scheduled flight between the US and Cuba. And more than half a century later, regular air services between the two former Cold War rivals are scheduled to resume at 1345 GMTon Wednesday, with an An Airbus A-320 belonging to the US carrier JetBlue Airways making the inaugural flight between Fort Lauderdale, Florida and the central Cuban city of Santa Clara. Coinciding with this event is the Cuban trip of US Transportation Secretary Anthony Foxx, who will be in Havana this week to hold talks with his counterpart Adel Yzquierdo and Foreign Minister Bruno Rodríguez. Foxx is expected to be on the flight, according to a Twitter post from his office. "The revival of regular direct flights is a positive step and a contribution to the process of improving relations between the two countries," Rodriguez said. Both sides have made efforts to deepen the bilateral partnership since December 2014, when US President Barack Obama announced that America was resuming diplomatic ties with Cuba after more than 50 years of deep-freeze. Diplomatic relations were restored in July 2015. A 'proud' airline Giselle Cortes, JetBlue's director of international airports, said her company was "proud" of the fact that it's the airline to operate the first direct flight. Cortes thanked the Cuban authorities for their "excellent" cooperation, particularly the staff of the airport in Santa Clara. She also expressed satisfaction with regard to the security arrangements at Cuban airports. "All international standards are met," she noted, pointing out this was also confirmed by the US Transportation Security Administration (TSA). JetBlue aims to become the "preferred US airline for travel to Cuba," Cortes said. The price of a one-way flight between Fort Lauderdale and Santa Clara amounted to $99 (89 euros), she said, adding that a round trip would cost about $210, including taxes and insurance. The rates are a lot cheaper than those of the charter flights, which are estimated to charge over $400 for a round trip. In 1979, both Washington and Havana authorized charter flights, largely humanitarian in nature, to transport Cubans residing in the United States and limited categories of American travelers. Barring a brief period in the 1980s, the charter flights have continued to operate. According to official figures, there were 4,783 charter flights in 2015 and 3,452 in the first six months of this year. Restrictions remain Since the US government eased travel restrictions to the Caribbean island nation, the number of Americans visiting the country has seen a jump. Washington, however, continues to bar US citizens from traveling to Cuba for tourist activities. Travel is allowed only when it falls under one of the 12 categories approved by the US government. These lingering restrictions also pose significant challenges to the US airlines operating flights to Cuba. And the purchase of the flight tickets is handled by the Florida-based Stonegate Bank, which is currently the only bank to conduct financial transactions between the US and Cuba. Meanwhile, JetBlue says it's working with the Cuban authorities on a mechanism that will facilitate the purchase of tickets in Cuba. The tickets can so far be bought only at the airport in Santa Clara. In total, the restored scheduled air service will comprise of 110 daily round trips, with 90 already authorized by both governments to nine Cuban airports, many of them in or near tourism hotspots. In addition to JetBlue, five other US airlines - American Airlines, Frontier Airlines, Silver Airways, Southwest Airlines and Sun Country Airlines - have been licensed to operate flights to various Cuban cities like Camaguey, Cayo Coco Santa Clara and Santiago de Cuba. They will be permitted to operate flights from airports in Miami, Fort Lauderdale, Chicago, Minneapolis-St. Paul and Philadelphia. The capital's left out There will not be any flights to Havana, however, even though a dozen US airlines applied for the chance to operate scheduled passenger and cargo service to Havana. Collectively, the airlines applied for nearly 60 flights per day to Havana, exceeding the 20 daily flights made available by arrangement between the two governments, according to US officials. But JetBlue executive Cortes hopes the airline will be able to start a service to the Cuban capital city by the end of the year. Transport Secretary Foxx could also announce something new in this regard on Wednesday. Concerns abound about the quality and capacity of Havana's airport, which is already bursting at the seams. Earlier this month, the Cuban government announced its privatization. It roped in the French corporations Bouygues Batiment International and Aéroports de Paris to renovate and manage the capital's José Martí International Airport. Another open question relates to whether or not the Cuban national airline, Cubana, will be able to service US cities, against the backdrop of demands and court rulings in the US regarding damage payments for the losses incurred on account of Cuba's nationalization program following its revolution in the 1950s. That's why there are legitimate fears that Cuban aircraft could be confiscated should they fly to US airports. "We do not anticipate Cuban-owned aircraft will fly to the US in the near future," said a US transport ministry spokesperson in February. And little has changed on this front since then. In this context, a completely normalized commercial flight service between the two countries is still a long way off. The Fort Lauderdale-Santa Clara flight is just the beginning.

After a gap of over 50 years, regular air services between the US and Cuba are resuming, underscoring the mending of ties between the two erstwhile Cold War foes. There are many unresolved issues, though. The year 1961 witnessed a number of historical events, including the start of the construction of the Berlin Wall and Yuri Gagarin’s first human space ... Read More »

US business a blessing for Deutsche Telekom

German telecommunications giant Deutsche Telekom has reported mixed results for the second quarter. Its T-Mobile subsidiary in the US logged a strong performance, but overall net profit dipped nonetheless. Deutsche Telekom on Thursday reported a 13-percent drop in bottom-line earnings for the second quarter as higher staff costs and investments weighed on profit. Net earnings fell to 621 million euros ($693 million) year on year, with the company pointing to the 400 million euros in one-time costs that arose from an early retirement scheme. By contrast, operating profit rose by 8 percent in the three months to the end of June to roughly 5.5 billion euros on revenues amounting to 17.8 million euros, marking a 2-percent increase over the same period a year earlier. Faster internet a priority The company acknowledged it had once again profited from the strong performance of its T-Mobile US subsidiary. A rival of AT&T and Verizon, it secured another 1.9 million customers in the second quarter. Deutsche Telekom confirmed its full-year guidance, predicting pre-tax earnings to hit 21.2 billion euros, a 6-percent surge over 2015. On the home front, the Bonn-based telecoms firm is facing massive investments as it aims to provide faster internet connections to 1.4 million more households across Germany.

German telecommunications giant Deutsche Telekom has reported mixed results for the second quarter. Its T-Mobile subsidiary in the US logged a strong performance, but overall net profit dipped nonetheless. Deutsche Telekom on Thursday reported a 13-percent drop in bottom-line earnings for the second quarter as higher staff costs and investments weighed on profit. Net earnings fell to 621 million euros ... Read More »

UK stocks erase all post-vote losses

London's benchmark FTSE 100 stock index has erased all its post Brexit vote losses on a wave of bargain hunting activities. Energy and financial shares were among the biggest winners after slumping right after the vote. Britain's FTSE 100 left behind its post-Brexit losses on Wednesday, fueled by a late afternoon surge predominantly in the value of energy and financial shares. The closely watched benchmark index hit its highest level since April, finishing the trading day 3.6 percent higher at 6,360.06 points. That jump lifted it above Thursday's close of 6,338.10 points posted before it plummeted by as much as 8.7 percent after Britain voted to leave the European Union. 'We're prepared' Despite all the recent prophecies of doom, the UK's Economic Secretary to the Treasury, Harriett Baldwin, said Wednesday her nation's banking sector was "well-placed" to deal with the fallout of the UK's shock vote. Addressing a retail banking conference in central London, Baldwin insisted the sector now had adequate capital and liquidity to weather the Brexit process. "Since the financial crisis in 2008, both the government and industry have been working extremely hard to ensure that the UK has a safer and stronger banking sector." Baldwin noted that UK banks had collectively raised over 130 billion pounds ($173 billion, 157 billion euros) of capital and now had over 600 billion pounds in high-quality liquid assets. "The Bank of England stress tests have shown that our institutions have enough capital to withstand a period of severe market volatility - in short, we're prepared." Analysts on the European mainland warned Wednesday's FTSE surge might be short-lived, suggesting the main reason behind the rapid recovery were increased activities by bargain hunters attempting to make short-term investments at just the right time.

London’s benchmark FTSE 100 stock index has erased all its post Brexit vote losses on a wave of bargain hunting activities. Energy and financial shares were among the biggest winners after slumping right after the vote. Britain’s FTSE 100 left behind its post-Brexit losses on Wednesday, fueled by a late afternoon surge predominantly in the value of energy and financial ... Read More »

Japan falls back into trade deficit as yen gets stronger

Japan has reported a drastic drop in exports, with shipments down for all of the Asian nation's most important trading regions. The strong yen had remained a headache for Japanese exporters, the government said. Fresh economic data for May showed Monday that Japan fell into its first trade deficit since January. The Asian nation logged a gap of 40.72 billion yen ($389 billion, 342 billion euros), compared with a trade surplus of 823 billion yen in April. Japanese exports dropped for all major regions, the government said in a preliminary report. The country's shipments to its most important trade partner, China, dipped by 14.9 percent in May from a year earlier, contributing to an 11.3-percent drop in overall shipments. The rising yen kept denting Japanese exports by making the country's products more expensive in overseas markets and thus less competitive. Imports down, too The government of Prime Minister Shinzo Abe had actively attempted to talk down the currency's strength, with ministers repeatedly suggesting that Tokyo could step into the market to weaken the yen in a bid to safeguard the fragile economy ahead of a July parliamentary election. The value of Japan's imports in May dropped by 13.8 percent mainly due to falling oil prices and weak domestic consumption. In general, Japan has imported more petroleum and liquefied natural gas for power generation since the 2011 Fukushima nuclear disaster. But falling global energy prices contributed to declines in May import numbers, the government pointed out.

Japan has reported a drastic drop in exports, with shipments down for all of the Asian nation’s most important trading regions. The strong yen had remained a headache for Japanese exporters, the government said. Fresh economic data for May showed Monday that Japan fell into its first trade deficit since January. The Asian nation logged a gap of 40.72 billion ... Read More »

Volkswagen bets on e-cars, self-driving vehicles

Volkswagen unveiled a plan for the next decade containing culture change, as it strives to compete in an industry moving towards e-cars, self-driving systems and on-demand mobility - all while it deals with Dieselgate. The implementation of the plan, dubbed the "Together Strategy 2025," will see "double-digit billion investments," according to VW CEO Matthias Müller at a press conference at the company’s headquarters in the German town of Wolfsburg. Müller admitted to the company having had its "major weaknesses exposed" in the wake of the "shake-up" from the scandal about it having fitted 11 million of its diesel cars with emissions test cheating software. "The catchwords here are structure, culture, efficiency," said Müller. Later, he said "the current crisis is a catalyst for us. Readiness for change has grown considerably." The famously autocratic management style of Müller's predecessor Martin Winterkorn is considered by many to have been one of the factors that led to the cheating. VW engineers and technical staff found themselves under pressure to push the carmaker all the way to the top of the industry. This time, Müller has announced an effort to "establish a culture that is open and value-driven." Apart from changing its corporate culture, Müller is also seeking a "massive transformation" of VW's core business of developing and building vehicles, based on driving forward innovation - some of it outsourced. "We will harness outside impetus by relying on acquisitions on venture capital investments in the future," said Müller. "We no longer have the illusion we can do everything better or by ourselves. For an engineering-driven company such as ours, that's a paradigm shift." E-cars, driverless cars Volkswagen announced that it would launch more than 30 battery-powered electric vehicles over the next 10 years, and that it was anticipating sales of 2 to 3 million e-cars by 2025 - or around 20 to 25 percent of total sales volume. Müller said battery technology would have to be among its core competencies if that's going to be become a reality. At the moment, e-car manufacturers rely heavily on external battery producers. And fully autonomous cars with self-driving systems also figure prominently in VW's unveiled strategy, with VW's own in-house developed model targeted for a market launch in 2021, helped along by 1,000 additional software specialists to be added to the carmaker's workforce. "We are making autonomous driving and AI core technologies of the VW Group," said Müller. The move comes as competition heats up from tech companies crossing over into the auto industry, such as Google and Apple. Ride-hailing The carmaker is also seeking greater relevance in mobility services solutions, setting up a specialized business unit to be headquartered in Berlin. First inroads into the mobility services business were made via its $300 million (267 million euro) investment in ride-hailing app Uber's rival Gett. Müller called it the nucleus of VW’s expansion in the area, aimed at bringing in multibillion-euro revenues by 2025. "The cars will have to come from somewhere, and they will have to come from us. We are working on setting up strategic networks that depend on us," said Müller. "The first step has been taken with Gett, as far as ride-hailing is concerned, we have bet on the right horse." Volkswagen is targeting a 7 to 8-percent profit growth by 2025, which Müller called "appropriate, ambitious, and at the same time realistic." The payout to shareholders is to be maintained at around 30 percent of net profit, he said. In April, VW posted its first annual loss in more than two decades for 2015, after setting aside over 16 billion euros to cover potential costs relating to the emissions scandal. In the first quarter of this year, the 12-brand group saw net profit slump 20 percent to 2.31 billion euros.

Volkswagen unveiled a plan for the next decade containing culture change, as it strives to compete in an industry moving towards e-cars, self-driving systems and on-demand mobility – all while it deals with Dieselgate. The implementation of the plan, dubbed the “Together Strategy 2025,” will see “double-digit billion investments,” according to VW CEO Matthias Müller at a press conference at ... Read More »

Apprenticeships go begging in Germany

A third of German businesses are unable to fill all trainee positions available. One reason is that more young Germans are going to university rather than take up apprenticeships after finishing high school. On Tuesday in Berlin, the Association of German Chambers of Commerce and Industry (DIHK) released the results of a large survey of 11,269 businesses that asked whether they had managed to fill all the trainee positions they had open last year. The survey also asked about the quality of applicants, and about the willingness of companies to hire refugees. "The situation on Germany's labor market is getting more worrying," said DIHK President Eric Schweitzer during the presentation of the survey's results. 516,200 women and men started apprenticeships in 2015. Yet that left a lot of positions unfilled. For Germany as a whole, nearly a third of businesses surveyed - 31 percent - were unable to recruit enough qualified applicants to fill all their available trainee positions. In eastern Germany, the numbers were even worse, with nearly half - 45 percent - forced to leave apprenticeship positions unfilled. There are two main reasons for the development, according to DIHK. First, there's demography. Germany's birthrate has been significantly lower than the replacement rate for many years. As a result, school populations are relentlessly shrinking. In 2016, about 5,000 fewer young people will reach trainee age than in 2015. The 2016 cohort of school-finishers will be 120,000 smaller than the cohort of 2006, a decade earlier. Second, a much larger percentage of school-leavers is going on to study at university rather than take up apprenticeships in industry or business. According to Schweitzer, "today 7 percent fewer young people apply to an apprenticeship program compared to 10 years ago - while at the same time, the number entering university studies is 40 percent larger." A pillar of German economic power Germany's "dual education system" for apprentices is justifiably renowned. Its basic set-up is simple: Young school-leavers who aren't university-bound enter a three-year apprenticeship program within a particular trade - for example, plumbing, small business administration, or wind-turbine installation and maintenance. They spend half their time getting on-the-job training under the guidance of qualified mentors in their chosen trade, and half their time studying in specialized trade schools. The system is government-subsidized: Trainees get a modest monthly salary, health insurance, and other benefits, such as reduced-fare access to public transit. Companies apply to the relevant trade or professional association to become certified providers of trainee positions with the dual education system. The advantage to companies is that they get to know their apprentices, and their apprentices get to know the procedures and tasks within the company. At the end of the three-year training period, it's common for trainees to be offered regular jobs with the company at which they did their training. Germany's apprenticeship system is one of the pillars of the country's economic strength. Arguably it's the most important pillar, alongside the no-nonsense get-the-job-done attitude that has been characteristic of German culture for centuries - which itself is transmitted to each new generation through the apprenticeship system. It's therefore a serious problem when a third of the country's businesses are unable to find a sufficient number of willing and qualified trainees to take up apprenticeships. "The missing apprentices of today are the missing professionals of tomorrow," Schweitzer warned. Refugees welcome, but not enough Three of four businesses surveyed said they're willing to offer apprenticeships to recently arrived refugees, most of whom are Muslims from the Middle East, South Asia or Africa - provided the refugees had gained adequate German language skills and had been given appropriate residency permits by the government. DIHK said that a crucial first step toward enabling companies to offer trainee positions to refugees was the "3 plus 2 rule" established under the government's new Integration Law. The rule specifies that migrants with temporary residence permits who have found trainee positions cannot be deported during the three-year apprenticeship period, nor can they be deported for two years after they've finished their training, if they've found a job. "That's very, very important for the companies," Schweitzer said, because it sets up sufficient legal certainty that they'll be able to recoup their investment of time and staff effort in training migrants. But the refugees won't be able to solve the problem of a lack of willing and qualified trainees in the short- or medium-run, he said, because "integration takes time" - the DIHK's studies show it takes five to seven years before migrants are ready for full integration into the workforce. And their numbers aren't large enough to solve the long-term problem either. Apprenticeship quality problems In the short run, companies have reacted to the dwindling number of willing applicants by relaxing their hiring standards. School leavers with poor academic records - even dropouts, whose peers in decades past might have had a hard time being accepted into one of the more demanding trade apprenticeship programs - are often given help to catch up in their math or language skills. And they're being offered better deals than apprentices of previous generations, including better salaries and permanent jobs on finishing their training. The DIHK wants the government to make greater efforts to improve the quality of new apprentices. About half the businesses surveyed complained that many trainees were poor at basic math and language skills, and many had poor discipline, a weak ability to cope with work stress, and performed inadequately on the job. The school system must address these problems, Schweitzer argued. But in the medium term, even turning to less-talented applicants won't be enough to turn around the numbers, according to DIHK's analysis. It will be necessary to entice more of the young people now flooding toward university to take up apprenticeships instead. To help with that, DIHK suggested "orientation courses" exposing students to trades and professions should be offered at grammar schools (German: "Gymnasien") - the type of high school attended by academically stronger students - in order to help students get a better appreciation of desirable alternatives to going to university after finishing high school. "A mechatronics technician can easily earn more than many an architect," said Achim Dercks, a DIHK vice-president. That suggests another possible approach to gaining recruits: Offer trade or professional apprenticeships to people after they've completed their Bachelor's degrees at university. Perhaps traditional boundaries between "Akademiker" and "Arbeiter," or college grads and tradespeople, need to be softened up.

A third of German businesses are unable to fill all trainee positions available. One reason is that more young Germans are going to university rather than take up apprenticeships after finishing high school. On Tuesday in Berlin, the Association of German Chambers of Commerce and Industry (DIHK) released the results of a large survey of 11,269 businesses that asked whether ... Read More »

German Bund yield drops to historic low

For the first time in modern German history, the yield of the country's benchmark 10-year debt - also known as Bund - has fallen below zero percent as investors rush to safety ahead of Britain's Brexit referendum. With the prospect of Britain leaving the European Union looming ever larger ahead of a referendum in 9 days, global investors are increasingly fleeing to safe havens such as German debt and the Japanese currency. As a result, the yield on Germany's benchmark 10-year debt fell into negative territory for the first time in its history on Tuesday. Falling yields are caused by high demand for the security, leading to rising prices and dwindling returns on the investment. Apart from fears about a possible Brexit, analysts also attributed the current rush to safety to concerns about the global economy and low inflation expectations in the eurozone. "In times of increasing market uncertainty, investors are buying securities with the lowest risk of default," NordLB analyst Michael Schulz told the news agency Reuters, adding that German Bunds were definitely among them. And VTB Capital economist Neil MacKinnon told AFP that the countdown to the Brexit referendum on June 23 was dominating the market agenda. "The referendum is too close to call and is creating understandable risk aversion in the markets." Stocks slump further Risk-averse investors on Tuesday sold off European shares for the fifth straight session, driving stock markets on the continent to their lowest in three month. The pan-European FTSEurofirst 300 index dropped one percent, while the broader STOXX Europe 600 index fell 1.1 percent in early trading. As several opinion polls suggest that support for quitting the 28-member bloc was gaining momentum among British voters, Germany was preparing for increased market volatility, a top official with the German Finance Ministry said on Tuesday. Jens Spahn, parliamentary state secretary in the ministry, told German broadcaster ARD that a "Leave" vote could trigger far greater volatility. "It will be important to demonstrate stability," Spahn said, adding that it would be critical for Germany and the rest of the EU to demonstrate unity and a determination to continue as a bloc. Spahn also said the ministry was bracing for a variety of scenarios, depending on the outcome of the referendum and the extent of the market reactions. A vote to leave the EU would mean that Britain would have to renegotiate trade agreements with the rest of Europe, and it would likely have to accept less preferable terms, Spahn said. Pound slides as yen rises The British pound was also affected by market jitters, slumping to a two-month low in trading in Asia on Tuesday, notably against the Japanese yen. The yen moved toward its strongest level since October 2014 as traders pushed into a currency seen as a safe bet in times of turmoil. "Amid all of this, the yen continues to demonstrate its preeminent safe-haven characteristics," said Ray Attrill, co-head of currency strategy at National Australian Bank. However, Japan's finance minister Taro Aso repeated a warning that officials were ready to step into currency markets to tame the rise of the yen because a strong currency was hurting growth and exports. "Sudden and large changes [in forex rates] are not desirable... We will act firmly when necessary," Aso told reporters. Financial market volatility is likely to increase in the days ahead as the US Federal Reserve (US Fed) is due to open a policy meeting on Tuesday, deciding on the future of US interest rates. Buoyed by a strong performance of the US economy in recent months, the Fed is weighing another rate hike, but may be holding back on the move so shortly before the British referendum.

For the first time in modern German history, the yield of the country’s benchmark 10-year debt – also known as Bund – has fallen below zero percent as investors rush to safety ahead of Britain’s Brexit referendum. With the prospect of Britain leaving the European Union looming ever larger ahead of a referendum in 9 days, global investors are increasingly ... Read More »

Microsoft to buy LinkedIn

Software giant Microsoft is set to take over professional networking site LinkedIn for $26.2 billion (23.3 billion euros) in a deal expected to be completed this year, the two companies have announced. "Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works," LinkedIn CEO Jeff Weiner said in a statement Monday. LinkedIn, primarily used by jobseekers and those wanting to build professional contacts, has more than 433 million registered users, according to the company's corporate website. It also has 105 million unique visiting members per month. The companies were quick to state that LinkedIn wasn’t facing radical change, saying in the statement that the website "will retain its distinct brand, culture and independence," with Weiner remaining CEO. Waiting for regulatory approval The transaction is expected to be completed by this year, but is still pending the approval of LinkedIn’s shareholders, and regulatory approval. Reid Hoffman, LinkedIn’s board chairman and controlling shareholder, called the acquisition a "refounding moment" for the website. The move comes as Microsoft seeks to expand from being a purely software-producing firm, and as LinkedIn seeks new growth opportunities.

Software giant Microsoft is set to take over professional networking site LinkedIn for $26.2 billion (23.3 billion euros) in a deal expected to be completed this year, the two companies have announced. “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us ... Read More »

Bayer confirms merger talks with Monsanto

A merger of the world's biggest producers of seeds and pesticides may soon be in the making. Missouri-based Monsanto confirmed reports that it received a bid from Germany's biggest drugs and chemicals firm Bayer. US seed and pesticide giant Monsanto said Wednesday it had received a proposal from Bayer which was "unsolicited, non-binding," but nevertheless reviewed by the company for "due diligence, regulatory approvals and other conditions." While the US company was assessing the offer, it said there was "no assurance" that any transaction would be "entered into or consummated." Bayer released its own statement on Thursday, briefly confirming that its executives had met with counterparts in their acquisition target to "privately discuss" a merger. Neither statement specified a price tag for the deal. But a bid to acquire Monsanto, which has a market capitalization of $42 billion (37.4 billion euros), is likely to be worth more than ChemChina's February deal to take over Swiss agrichemicals giant Syngenta for $43 billion. Monsanto itself tried to buy Syngenta last year. The scale of a Bayer-Monsanto merger could face resistance from antitrust regulators. Agricultural suppliers like Monsanto have been hit by low commodity prices, causing farmers to cut down on supply orders. The end of the first quarter saw Monsanto cut its earnings forecast for 2016.

A merger of the world’s biggest producers of seeds and pesticides may soon be in the making. Missouri-based Monsanto confirmed reports that it received a bid from Germany’s biggest drugs and chemicals firm Bayer. US seed and pesticide giant Monsanto said Wednesday it had received a proposal from Bayer which was “unsolicited, non-binding,” but nevertheless reviewed by the company for ... Read More »

Scroll To Top