Farm News, Thursday January 26, 2017
DuPont Expects Merger Delays with Dow
DuPont says it needs an additional three months to complete merger activities with Dow. Regulators around the world are continuing to look over the deal that would combine the two U.S. chemical companies. A DuPont statement this week says they expect the deal to close by end of June after setting March as the initially anticipated closing date.
DuPont CEO Ed Breen told investors and analysts during a recent conference call that he feels the deal is in its “second quarter.” Dow and DuPont are working to alleviate concerns about the $71 billion-dollar deal creating a chemical giant. European Union officials have openly expressed concerns about the deal slowing the discovery of new pesticides. The EU recently granted a 10-day extension on Monday. The companies had requested the extension to fine-tune a package of concessions designed to ease concerns about the deal. DuPont says it expects net income to be down for the first quarter of this year, partly due to a 15 cents per share expense related to the merger.
U.S. Ag Group Signs $300 Million Algeria Deal
An Algerian company recently signed a deal with an American farm group to set up $300 million in agricultural projects in the country. Algeria’s Ag Minister says the north African country is seeking to reduce its dependence on imports. A privately-owned Algerian dairy company signed the deal with the American international Agriculture Group to develop agricultural projects that include cereals, potato, fertilizers, along with dairy and feed projects.
A Reuters report says Algeria imports most of its ag-related products due to weak domestic output. It’s looking to diversify the economy by adding farm products and getting away from oil and gas products after a drop in the price of oil hit state finances. The company also approved a new law allowing incentives for foreign and local firms that are willing to invest in the non-oil sectors of the economy. As the OPEC member nation struggles to diversify the economy, oil and gas profits still account for 60 percent of the state budget and 95 percent of the country’s exports.
Source; NAFB News