22% Annual Return From Syngenta
Chris DeMuth Jr. • 54 Comments
Chris DeMuth Jr. • 54 Comments
Fri, Jul. 22, 8:42 AM
- Syngenta (NYSE:SYT) says talks with regulatory authorities to win approval for its takeover by ChemChina have been "constructive" and the goal remains to complete the deal by year-end.
- CEO Erik Fyrwald says talks are ongoing with the Committee on Foreign Investment in the U.S., which is seen as the sticking point in the regulatory passage of the deal since the transaction has implications for U.S. food security.
- The comments come as SYT's H1 sales fell 7% Y/Y to $7.1B and EBITDA fell 12% Y/Y to $1.77B, worse than the ~5% decline forecast by analysts, as its profit margin fell to 24.9% from 26.2%.
Fri, Jul. 22, 5:45 AM
Tue, Jul. 12, 9:59 AM
- China National Chemical says it is extending its $43B takeover agreement for Syngenta (SYT +0.2%) until at least September 13.
- Bloomberg reports that ChemChina plans to sell $10B of preferred shares and raise another $15B in cash to help fund the acquisition, bringing the total equity contribution to $25B, and borrow the remainder through a loan package.
- The offer for SYT, announced in February, had been extended in May and was due to expire on July 18.
Fri, Jun. 17, 5:28 PM
- ChemChina announces changes to the financing of its planned $43B purchase of Syngenta (NYSE:SYT), likely ensuring a lengthier review by regulators around the world, including the U.S. Committee on Foreign Investment.
- The Chinese company says it has secured a $5B investment from an arm of one of state-owned conglomerate Citic, which will allow it to reduce its reliance on loans to finance the deal.
- ChemChina’s continued effort to secure financing for the deal has weighed on SYT shares, which have traded at a steep discount to the offer price.
Tue, Jun. 14, 3:17 PM
- ChemChina is seeking more time for the U.S. to complete a national security review of its planned takeover of Syngenta (SYT -0.3%), Bloomberg reports.
- The companies resubmitted the $43B deal to CFIUS, the government panel that reviews acquisitions of U.S. businesses by foreign investors, according to the report; the committee has a maximum of 75 days to complete reviews, and refiling restarts the clock.
- It is not known whether the companies have encountered resistance from the panel over possible security risks or need more time to negotiate changes to the deal to resolve any concerns.
Fri, Jun. 3, 11:19 AM
- The popular atrazine herbicide used by U.S. farmers to control weeds can be dangerous to animals and fish and leaves behind worrisome residue levels, the EPA in a draft report.
- The agency's assessment could lead to tighter regulatory limits on atrazine, which is manufactured by Syngenta (SYT +0.8%).
- Agriculture groups criticize the report; the Iowa Corn Growers Association says that if the EPA's report is finalized as written, it could cause label restrictions so severe that they would "effectively ban the product from most uses."
- SYT, which is set to be acquired by ChemChina, says atrazine is safe and that the EPA report "contains numerous data and methodological errors."
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
Tue, May 17, 2:59 PM
- Foods produced from genetically engineered crops do not pose additional health risks to humans compared with conventionally bred foods, the National Academies of Sciences, Engineering, and Medicine says in a new report.
- "Patterns of change in cancer incidence in the United States and Canada are generally similar to those in the United Kingdom and western Europe, where diets contain much lower amounts of food derived from [genetically engineered] crops, according to the report.
- Another source of debate over GMOs recently has concerns about the safety of the glyphosate weed killer; the WHO and the Food and Agriculture Organization of the United Nations said in a report yesterday that glyphosate is not likely to be carcinogenic.
- Relevant tickers include MON, DD, SYT.
- Separately, MON says it is temporarily suspending operations in Burkina Faso after the African country’s government moved to stop production of genetically modified cotton.
Tue, May 17, 3:12 AM
- The Department of Agriculture has agreed to join the U.S. government panel that is reviewing ChemChina's planned $43B acquisition of Syngenta (NYSE:SYT), sources told Reuters.
- The move comes after lawmakers wrote to Treasury Secretary Jacob Lew in March to ask that the USDA be involved in the review to better assess the potential impacts of the transaction on domestic food security.
- Syngenta extended the offer period for ChemChina's takeover bid following the news.
Thu, May 12, 3:37 PM
- Monsanto (MON +8.5%) remains sharply higher though off highs of the day, following headlines that Bayer (OTCPK:BAYRY -4.1%) and BASF (OTCQX:BASFY -1.7%) are considering a possible acquisition of the company.
- Financial Times reports that MON is interested in forming some sort of combination with the agrochemical businesses of either of the two companies but opposes any deal that would turn it into a division of a German company.
- Piper Jaffray analysts say the interest in acquiring MON is mere speculation, seeing a potential joint venture as a more likely outcome as "we believe Monsanto remains committed to building a chemistry business."
- J.P. Morgan believes Bayer would need to raise equity given the size of the deal, and thinks Bayer investors likely would be only lukewarm around the potential deal given limited accretion and investor desire for Bayer to strength its pharma pipeline following recent setbacks.
- Analysts say a MON takeover likely would draw intense scrutiny from global regulators already confronting an unprecedented wave of consolidation in the crop chemicals industry involving the likes of Dow Chemical (DOW +0.8%), DuPont (DD +0.2%) and Syngenta (SYT +0.4%).
- Now read Seed war sparked: Bayer and BASF to battle over Monsanto?
Wed, May 4, 4:12 AM
- Syngenta (NYSE:SYT), the Swiss agrochemical maker that agreed to be acquired by state-owned ChemChina, said Erik Fyrwald will take over John Ramsay (who has been interim CEO since November 2015) as chief executive from June 1.
- Fyrwald spent 27 years at DuPont. In 2008, he was named head of Nalco, and then became CEO of Univar (NYSE:UNVR) in May 2012.
Wed, Apr. 20, 8:24 AM
- Syngenta (NYSE:SYT) still expects to complete the takeover by ChemChina by the end of the year, CEO John Ramsay said, brushing off opposition by some U.S. lawmakers and the possibility that the deal will be blocked by regulators.
- The process for gaining approval from regulators is moving according to the company's original timetable, Ramsay said in today's earnings conference call, but he declined to specify whether an application has been filed to the Committee on Foreign Investment in the U.S.
- Ramsay also said the break fee payable by SYT in case the deal falls apart has been cut to $800M from an initially agreed $1.5B; the breakup fee payable by ChemChina is ~$3B.
- SYT reported that Q1 sales fell 7% Y/Y to $3.7B, primarily driven by the stronger U.S. dollar; sales fell 4% to Europe, Africa and the Middle East, although they rose 6% at constant exchange rates, while sales fell 2% at constant exchange rates to North America.
- Now read Europe earnings roundup
Wed, Apr. 20, 4:42 AM
- SAP's net profit jumped 38% to €572M, indicating that its focus on the cloud is beginning to pay off.
- ARM Holdings' (NASDAQ:ARMH) pre-tax profits rose 14% to £137.5M, as it expanded licensing growth in a solid first quarter.
- Hurt by a strong dollar and drop at its Latin American business, Syngenta (NYSE:SYT) reported its fifth straight quarterly decline in sales.
- ABB suffered a 7% drop in orders, but the Swiss industrial giant's profit fell less than expected.
- Cheers! Heineken (OTCQX:HEINY) far exceeded analyst expectations, benefiting from a 23% rise in Asian sales due to the Lunar New Year.
Fri, Apr. 15, 4:57 PM
- Vermont’s attorney general asks a federal court to force Monsanto (NYSE:MON), DuPont (NYSE:DD), Syngenta (NYSE:SYT) and other big seed and food companies to turn over internal research related to “potential health or environmental impacts” of GMO crops, as well as pesticides used on them.
- The AG also is seeking from ConAgra (NYSE:CAG) and Kellogg's (NYSE:K) “consumer survey research” conducted over the past decade on GMO foods and on the use of “natural” labels on such products.
- Vermont is defending its law passed in 2014 that requires labels for some food products made from biotech crops.
Fri, Apr. 8, 4:22 AM
- Syngenta (NYSE:SYT) announced today that Caroline Luscombe, Head Human Resources, will be leaving at the end of June to take up a similar role in another company.
- Caroline joined Syngenta in 2010 from GE Capital and became a member of the Syngenta Executive Committee in 2012.
- A successor will be announced in due course.
- Now read Syngenta Likely To Return 20% Within The Next 6 Months »
Thu, Mar. 24, 4:46 PM
- Syngenta (NYSE:SYT) says its planned sale to ChemChina poses no food safety or significant national security risks, as the company responds to U.S. lawmakers' concerns over the company's takeover by the Chinese state-owned group.
- A bipartisan group of senators warned earlier this week of greater risks when significant U.S. agricultural assets come under control of "a foreign government with clear strategic interests."
- SYT sells ~10% of soybean seeds in the U.S. and ~6% for corn, according to estimates from Morgan Stanley.
Syngenta AG is engaged in the manufacture, development, and distribution of crop protection products and seeds. It operates through the following geographical segments: Europe, Africa and Middle East; North America; Latin America; Asia Pacific; and Lawn and Garden. The four geographic regions... More
Sector: Basic Materials
Industry: Agricultural Chemicals
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