Live from Vegas, Day 2: After the M&A Dust Settles

Alex Polinsky (right) and Jim DeLisi explain what’s driving the most recent round of M&A activity, the ongoing impact it will have on the industry, and where we’re headed over the next several years.

In their Wednesday morning session kicking off day two of the AgriBusiness Global Trade Summit – Americas, Jim DeLisi, owner of Fanwood Chemical, and agchem industry veteran and consultant Alex Polinsky, took a historical look at merger and acquisition activity in the agchem market and shared what the landscape will look like when the most recent round is over.

That is, at least until the next M&A wave starts – probably 15 years from now, a continuation of the cycle of the last nearly half-century.

When the current merger activity dies down, control over the agchem industry by the top three new companies will be extensive, DeLisi said. He expects BASF, which has a reported $50 billion to spend in the space, will make a move at some point soon, likely on the sought-after glufosinate/LibertyLink assets that Bayer is poised to divest in order to satisfy regulatory authorities. Syngenta/ChemChina is probably the only other realistic bidder for the assets.

The new Bayer/Monsanto is widely expected to dominate the space once the dust settles in 2018, with ChemChina/Syngenta coming in at number 2 and Dow-DuPont close behind. BASF is projected to occupy a distant fourth, followed by FMC, with its acquisition of DuPont assets, at number 5.

Rounding out the top 10 players in the agchem space: Nufarm, UPL, Platform Specialty, Albaugh, Sumitomo, and AMVAC. The next five are likely all to be Chinese manufacturers, DeLisi said.

With U.S. agribusiness having lost a staggering $15 billion in value from 2008 through 2016 on the back of spiraling commodity prices, Polinsky discussed the need for innovation to continue – M&A, essentially, represents the path of least resistance to keep revenue and profits high enough to support more R&D.

Mergers are also set to consolidate the distribution phase of the industry as everyone aims to get more out of the supply chain to drive profits back to their former healthy state, he said. On this front, keep an eye on two companies that could present the so-called “Amazoning” of the agchem industry: FarmTrade and Farmers Business Network (FBN).

“Firms like these could flatten the supply chain and might be the beginning of the ‘Amazoning’ for grower supplies,” DeLisi said. “If the Chinese government does succeed in helping the export of finished and formulated products and gets into this kind of distribution network, it could eliminate a lot of costs involved in getting things to market.”

He added: “There is no doubt that the internet is coming to ag chemicals in a much bigger way.”



Topics: ,

Leave a Reply



Biostimulants Gaining Ground

Growers are embracing these products rapidly as they search for ‘greener’ options to produce their crops.


Introducing Biostimulant CommerceCon

The $1.8 billion biostimulant market is expected to reach $2.9 billion by 2021. It’s little wonder why both traditional agchem


Registration Opens for Trade Summit, Biostimulant CommerceCon

Registration is now open for AgriBusiness Global’s co-located events, the AgriBusiness GlobalSM Trade Summit and Biostimulant CommerceCon. After a record-setting


Higher Volumes Boost BASF Agricultural Solutions Sales

In 2018, the Agricultural Solutions segment will be strengthened with the acquisition of significant parts of Bayer’s seed and herbicide businesses.


Slideshow: AgriBusiness Global Hosts Trade Summit Southeast Asia

AgriBusiness Global hosted its Trade Summit Southeast Asia from Dec. 5-6 in Jakarta, Indonesia at the J S Luwansa Hotel.


PMFAI Hosts 12th Annual Conference & Exhibition

The 12th International Crop Science Conference & Exhibition (ICSCE) organized by the Pesticides Manufacturers & Formulators Association of India (PMFAI)


Suphur Mills Ltd. to Expand in Newer Formulations, Biologicals

Bimal Shah, Director, describes ambitious plans for the company and his thoughts on distribution, the educational process, and Make in India.


The Top 10 Crop Protection Companies, Post Mega-Mergers

Everyone loves a good Top 10 list. In fact, some prominent celebrities such as David Letterman spent much of their careers cataloguing various Top 10 lists.


SLIDESHOW: AgriBusiness Global Trade Summit 2017

The 11th annual AgriBusiness Global Trade Summit — Americas attracted a record-breaking crowd of more than 800 delegates from 45-plus


Cutting Edge Conferences: Meister Media to Host Precision Agriculture and Biocontrols Events

Biological control products and precision agriculture are among the fastest growing and most promising areas of growth for the crop


Live from the Trade Summit: Crop Protection Market Recovery Seen in 2017

Kicking off the Summit on Tuesday was a message of growth and optimism for the industry, from Dr. Bob Fairclough of Kleffmann Group.

Africa/Middle East

Looking to Next Year: Announcing the 2018 AgriBusiness Global Trade Summit

The AgriBusiness Global Trade Summit is only one day old, but we’re already thinking about next year. For 11 years,


Disruptive Trends in Distribution: Survey Results from Around the Globe

We asked you in a recent survey how the mega-mergers in crop protection manufacturing will impact the industry and your


Biocontrols Revolutionize Grower’s Strategy

In preparation for the Biocontrols Africa Conference & Expo 2017, 12-13 July in Cape Town, AgriBusiness Global visited numerous key players in

Africa/Middle East

Biocontrols Africa: The Retailer’s Perspective

  Kobus Pienaar, Global Business Journey Manager for Woolworths Foods talks about the Farming for the Future program and the

Africa/Middle East

Biocontrols Africa Conference & Expo Answers Why Bioproducts are Gaining Traction in South Africa

AgriBusiness GlobalTM Media is pleased to announce the launch of its first Biocontrols Africa Conference & ExpoSM on 12-13 July, 2017 in

Africa/Middle East

An Invitation to Be Rewarded for Environmental Excellence

Dear Crop Protection Professional, As an AgriBusiness Global™ reader, you’re no doubt aware we organize the Environmental Respect Awards each


CAC Continues to Expand

Q How will this show compare to last year’s show in terms of exhibitors and attendees? 18th China International Agrochemical


ABIM Sets Attendance Record

The 11th Annual Biocontrol Industry Meeting was attended by nearly 900 delegates from 48 countries representing 426 companies. The event,

Latest News


Spain, Italy: Tracking the EU Powers in Crop Protection

Three months into 2018, many of results of the Kleffmann end-user panels for 2017 are finalized. They confirm our view


U.S. Farm Bill Draft Defines Plant Biostimulants for First Time

Definition is a critical step in the legislative process to support the development of new sustainable technologies for agriculture and U.S. farmers.


Bayer Gains Russian Approval for Monsanto Deal

Bayer AG said Friday that Russian antitrust authorities have approved its proposed $57 billion acquisition of Monsanto Co. on the


Indian IoT Platform for Pre and Post Harvest Raises Seed Round

Indian startup AgNext has raised an undisclosed seed round led by India-focused Agtech VC Omnivore Partners along with Singaporean angel

Industry News

Verdesian Launches Renewed Focus on Grower Nutrient Use Efficiency

Verdesian Life Sciences has announced a reformulation of its mission, positioning statement and approach in order to create a more