The decision concerning the sale by Monsanto (NYSE:MON) of its hybrid sunflower seeds business to Syngenta AG (NYSE:SYT) over antitrust issues has been pushed back to November 25 by the European Commission.
According to the commission, the reason for the extension will be to give them more time to see the remedies the two companies are taking to assuage concerns.
The deal, if completed, would also give Syngenta a foothold in the U.S. sunflower market.
They would get complete control over the sunflower seeds, along with the genetic information of the seeds, and their breeding and development.
The European Commission is looking into the competition factors related to the breeding and marketing of the seeds in the EU.
Past experience has shown that Europe will require companies to divest in the higher market areas in order to allow the deal to go through.
Showing posts with label Syngenta AG. Show all posts
Showing posts with label Syngenta AG. Show all posts
Friday, September 3, 2010
Monday, August 30, 2010
Monsanto (NYSE:MON), Syngenta (NYSE:SYT) Embrace Genetic Wheat Breakthrough
Monsanto (NYSE:MON) and Syngenta (NYSE:SYT) are among the major companies working on the development of genetically modified wheat, and news of publication of the gene map of wheat is a major step toward improving their efforts.
While ultimately it could help in developing new wheat varieties, the International Wheat Genome Sequencing Consortium was quick to add they were still a ways from cracking the complicated genetic code of wheat, and there's still a lot of work to be done.
Kellye Eversole, executive director of the International Wheat Genome Sequencing Consortium (IWGSC), said, "This is significant progress. It is a very useful contribution towards the final goal of a genome sequence-based platform for wheat breeding. While we are nowhere near cracking the genetic code and far from having all of the information needed to understand the wheat genome, we are moving forward."
Traits in demand, as in other genetically modified seed, are drought resistance, increased yields, and enhanced response to nitrogen fertilizers.
The immediate value to companies like Monsanto and Syngenta are the probably foundation laid where they can now identify genetic differences between varieties of wheat.
Long term, the interpretation of the data as to what is means is the major challenges ahead.
With corn being the major recipient of research dollars among grains, at a rate of about 20 times the amount, the hope is the breakthrough will encourage more investment into the field.
While ultimately it could help in developing new wheat varieties, the International Wheat Genome Sequencing Consortium was quick to add they were still a ways from cracking the complicated genetic code of wheat, and there's still a lot of work to be done.
Kellye Eversole, executive director of the International Wheat Genome Sequencing Consortium (IWGSC), said, "This is significant progress. It is a very useful contribution towards the final goal of a genome sequence-based platform for wheat breeding. While we are nowhere near cracking the genetic code and far from having all of the information needed to understand the wheat genome, we are moving forward."
Traits in demand, as in other genetically modified seed, are drought resistance, increased yields, and enhanced response to nitrogen fertilizers.
The immediate value to companies like Monsanto and Syngenta are the probably foundation laid where they can now identify genetic differences between varieties of wheat.
Long term, the interpretation of the data as to what is means is the major challenges ahead.
With corn being the major recipient of research dollars among grains, at a rate of about 20 times the amount, the hope is the breakthrough will encourage more investment into the field.
Friday, July 23, 2010
Syngenta (NYSE:SYT) Drops 5 Percent on Lower Earnings
After missing estimates and plunging 11 percent in earnings for their latest reporting period, Syngenta (NYSE:SYT) declined almost 5 percent in New York, as the agrochemical and seed business continues under pressure.
The company ended Thursday's trading session at $43.77, a fall of $2.22, or 4.83 percent.
Profits came in at $1.25 billion for the six-month period ending June 30, down from the $1.4 billion in the same period last year, and missing analysts' estimates of $1.32 billion.
Revenue also missed, although not by much, as it increased from $6.66 billion last year to $6.74 percent this year, gaining 1 percent Estimates were for $6.78 billion in sales.
Guidance wasn't inspiring either, as the company looks to remain level for the rest of 2010 for earnings, assuming the market in Latin America remains robust.
The company ended Thursday's trading session at $43.77, a fall of $2.22, or 4.83 percent.
Profits came in at $1.25 billion for the six-month period ending June 30, down from the $1.4 billion in the same period last year, and missing analysts' estimates of $1.32 billion.
Revenue also missed, although not by much, as it increased from $6.66 billion last year to $6.74 percent this year, gaining 1 percent Estimates were for $6.78 billion in sales.
Guidance wasn't inspiring either, as the company looks to remain level for the rest of 2010 for earnings, assuming the market in Latin America remains robust.
Tuesday, July 6, 2010
Mosaic (NYSE:MOS) Potash (NYSE:POT), Syngenta (NYSE:SYT) Intrepid Potash (NYSE:IPI) Will Remain Under Pressure
Fertilizer companies Mosaic (NYSE:MOS) Potash Corp. (NYSE:POT), Syngenta AG (NYSE:SYT) and Intrepid Potash, Inc. (NYSE:IPI) will continue to remain under pressure for now, as there's nothing in the short term which will generate demand for their products beyond current levels.
Like with other commodity companies though, these companies will definitely be a good long term play, as ultimately the demand for food in countries around the world will result in increased demand for fertilizers to grow the crops needed to supply the world with that food.
For now though, austerity is reigning, and until that changes, countries and farmers will continue to pay close attention to costs and pay only what makes sense to them, which will keep downward pressure on fertilizer prices.
That won't be sustainable over the long term, but until the global economic picture improves, that will be the way of life for these fertilizer companies.
Like with other commodity companies though, these companies will definitely be a good long term play, as ultimately the demand for food in countries around the world will result in increased demand for fertilizers to grow the crops needed to supply the world with that food.
For now though, austerity is reigning, and until that changes, countries and farmers will continue to pay close attention to costs and pay only what makes sense to them, which will keep downward pressure on fertilizer prices.
That won't be sustainable over the long term, but until the global economic picture improves, that will be the way of life for these fertilizer companies.
Dow Chemical (NYSE:DOW), Syngenta (NYSE:SYT) in Distribution Agreement
Dow Chemical (NYSE:DOW) announced they've entered into an exclusive supply and distribution agreement with Syngenta AG (NYSE:SYT), which will go into effect on September 1.
The agreement with Syngenta is via Dow's wholly owned subsidiary Dow AgroSciences.
Syngenta will supply and distribute crop protection products from Dow AgroSciences to the Commonwealth of Independent States (CIS) markets.
Countries included in that region are Kyrgyzstan, Armenia, Azerbaijan, Belarus, Uzbekistan, Kazakhstan, Moldova, Russia, Tajikistan, Georgia, Turkmenistan and Ukraine.
The Seeds, Traits, & Oils of Dow AgroSciences won't be affected by the deal, and will continued to be operated under the Dow roof.
Terms of the deal weren't disclosed.
The agreement with Syngenta is via Dow's wholly owned subsidiary Dow AgroSciences.
Syngenta will supply and distribute crop protection products from Dow AgroSciences to the Commonwealth of Independent States (CIS) markets.
Countries included in that region are Kyrgyzstan, Armenia, Azerbaijan, Belarus, Uzbekistan, Kazakhstan, Moldova, Russia, Tajikistan, Georgia, Turkmenistan and Ukraine.
The Seeds, Traits, & Oils of Dow AgroSciences won't be affected by the deal, and will continued to be operated under the Dow roof.
Terms of the deal weren't disclosed.
Friday, May 21, 2010
Monsanto (NYSE:MON) Retains UBS (NYSE:UBS) Buy Rating
Monsanto (NYSE:MON) retained its buy rating from UBS Securities (NYSE:UBS), as analyst Don Carson kept it the same, while also retaining his price targe of $83 a share, down from his previous $86 a share.
Most analysts, including Carson, look at Monsanto's Roundup herbicide as unable to improve its price, not because of generic versions from China, but from their major competitors like Dow Chemical (NYSE:DOW) and Syngenta AG (NYSE:SYT).
Carson also reduced the earnings per share for Monsanto for the current fiscal year from $3.10 to $3.00, ending in August 2010; down from $3.95 to $3.65 for fiscal 2011; and from $4.85 to $4.40 for fiscal 2012.
Most analysts, including Carson, look at Monsanto's Roundup herbicide as unable to improve its price, not because of generic versions from China, but from their major competitors like Dow Chemical (NYSE:DOW) and Syngenta AG (NYSE:SYT).
Carson also reduced the earnings per share for Monsanto for the current fiscal year from $3.10 to $3.00, ending in August 2010; down from $3.95 to $3.65 for fiscal 2011; and from $4.85 to $4.40 for fiscal 2012.
Saturday, May 15, 2010
Syngenta's (NYSE:SYT) NK 8840 Genetically Modified Corn Starting Field Trials
Syngenta (NYSE:SYT) is about to start field trials in the Philipines for its genetically modified corn, registered as NK 8840.
The new corn seed will produce crops resistant to the corn borer and other insects which suck and destroy crops. Estimated yields for the crop are from 10 to 14 metric tons per hectare.
Recher Ondap, Syngenta Philippines country head for seeds, said in an interview that it should be ready to launch in 2012, “We will have field trials in the third and fourth quarter of the year. We are set to commercialize it by late 2012.”
Included in the corn is high-strength GM Bacillus thuringiensis, or Bt, which pretty much stops most caterpillar type pests very quickly. There is more pest protection with the additional treatment of Cruiser on the seeds.
This particular corn variety also has strong resistance to herbicides, so they can also be sprayed when needed and not suffer damage.
The new corn seed will produce crops resistant to the corn borer and other insects which suck and destroy crops. Estimated yields for the crop are from 10 to 14 metric tons per hectare.
Recher Ondap, Syngenta Philippines country head for seeds, said in an interview that it should be ready to launch in 2012, “We will have field trials in the third and fourth quarter of the year. We are set to commercialize it by late 2012.”
Included in the corn is high-strength GM Bacillus thuringiensis, or Bt, which pretty much stops most caterpillar type pests very quickly. There is more pest protection with the additional treatment of Cruiser on the seeds.
This particular corn variety also has strong resistance to herbicides, so they can also be sprayed when needed and not suffer damage.
Saturday, May 8, 2010
Syngenta (NYSE:SYT) Battling Monsanto (NYSE:MON) with Viptera Corn Seed
Syngenta AG (NYSE:SYT) is ready to increase its share of the corn seed market, when it directly attacks Monsanto (NYSE:MON) with its introduction of genetically modified Viptera corn seeds next year.
At this time Syngenta has an 8.5 percent share of the corn seed market in the United States, and they think this could move that percentage up significantly.
The corn seed is insect and weed killer resistant, and CEO Michael Mack claims the new corn seed has "the best trait in the marketplace for the control of those insects” which attack corn.
Regulators gave approval to Viptera in April.
At this time Syngenta has an 8.5 percent share of the corn seed market in the United States, and they think this could move that percentage up significantly.
The corn seed is insect and weed killer resistant, and CEO Michael Mack claims the new corn seed has "the best trait in the marketplace for the control of those insects” which attack corn.
Regulators gave approval to Viptera in April.
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