Ag News, August 11, 2015

Groups Seeking to Derail Monsanto Takeover of Syngenta

Several farm and consumer groups are seeking to derail the proposed deal Monsanto has offered to Syngenta as a possible merger/takeover. Ag Professional reports coalitions of opponents are being formed and market analyzations are being conducted. It comes though as Monsanto, the world's largest seed company, has yet to persuade Syngenta, the world's top provider of agricultural chemicals, to even start negotiations. The National Farmers Union has openly opposed the deal, as NFU president Roger Johnson says “this would reduce competition in the marketplace.” The American Antitrust Institute nonprofit group also will lobby against any deal. Diana Moss, its president, said "Farmers are already paying through the nose," and that "this would take it to a whole new level." Monsanto company officials say they are making progress persuading Syngenta shareholders that its $45 billion acquisition offer should not be ignored, and that farmers would benefit through greater product innovation. Monsanto maintains that farmers are the companies number one priority and that would not change under any acquisition. Meanwhile, Reuters reported last week BASF has lined up a loan package from large multinational banks for a potential takeover offer for Syngenta as well.

More Confidence Expressed in Completing TPP

U.S. Secretary of State John Kerry Friday expressed more confidence that the Trans-Pacific Partnership would be completed this year. Kerry likened the TPP talks to a deal negotiated over 18 months between Iran and six other countries to lift sanctions in return for curbs on a nuclear program Iran insists is peaceful. Reuters reports Kerry points to that recent nuclear deal as proving hurdles in international agreements could be overcome. Many hurdles through remain in the TPP, including sticking points on dairy markets. The TPP would cover 12 countries with a combined gross domestic product of $28 trillion, among them Australia and Japan. Even if the trade deal could be completed by the end of the year, it does face election cycle politics in the United States.

Keystone XL Company Quietly Planning for Denial of Permits

TransCanada has been publicly optimistic regarding the chances for the approval of permits needed to build the Keystone XL oil-pipeline, but The Hill reports the company is quietly preparing for the permits to be denied by the Obama administration. But, TransCanada officials are all but certain it won’t get the presidential permit, according to the Hill. One of the top strategies TransCanada is considering is to sue the United States through the North American Free Trade Agreement, but the United States has never lost a case in NAFTA arbitration. The administration has made no mention on how the president will rule on the permits to cross the border, but North Dakota Senator John Hoeven has said Obama will reject the permits.

Source:  NAFB News