Agro Chemical Merger

Two of the worlds largest chemical companies, Dow and DuPont are in the advance stages of merger negotiations.  If the deal goes ahead it would create the worlds largest agricultural supply company.  It would be a close third behind Syngenta and Bayer in terms of the share of global pesticides sales.  But adding Dow’s seed business to DuPont’s Pioneer operation would also put the merged business on a par with Monsanto in the seeds market.  Following any merger it is proposed that the business would eventually be split into three with one part focused on agricultural markets.  This deal continues the recent trend of consolidation in the agricultural supply sector.  Monsanto recently had its bid for Syngenta rejected, but the US firm may be tempted to try again.  Other combinations involving these two plus Bayer and BASF are also possible.