The Supreme Court has asked the Biden administration to comment on the RoundUp weed killer case before it. Bayer execs see this as an indication that the court is taking an interest in it, and appear hopeful that the glyphosate litigation can finally be put to rest without adding to the already staggering cost to the company. The 2018 acquisition of Monsanto, which put Bayer on the hook for the RoundUp product liability claims was (at least so far) devastating for Bayer shares, which remain 60% off their 2015 (!) peak.
The global seed and agricultural chemicals industry has undergone significant consolidation over the last decade, with Bayer absorbing Monsanto, Dow and Du Pont combining their agribusinesses into Corteva, Syngenta getting bought by ChemChina, and Potash and Agrium combining to form Nutrien.
Ultimately, this more concentrated supply should lead to better margins for the remaining competitors, especially in a world where climate change, rising population, and increasingly depleted soils will challenge global food supply.
I will be adding to BAYRY from here. This will be a strategic long-term holding. Since I don't anticipate selling in the next few years, I won't attempt to put a price target on it.
The global seed and agricultural chemicals industry has undergone significant consolidation over the last decade, with Bayer absorbing Monsanto, Dow and Du Pont combining their agribusinesses into Corteva, Syngenta getting bought by ChemChina, and Potash and Agrium combining to form Nutrien.
Ultimately, this more concentrated supply should lead to better margins for the remaining competitors, especially in a world where climate change, rising population, and increasingly depleted soils will challenge global food supply.
I will be adding to BAYRY from here. This will be a strategic long-term holding. Since I don't anticipate selling in the next few years, I won't attempt to put a price target on it.