Asset sales plan secures EU backing for $130 billion Dow, DuPont


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Asset sales plan secures EU backing for $130 billion Dow, DuPont merger

The Dow logo is seen on a building in downtown Midland, Michigan, in this May 14, 2015 file photograph. Rebecca Cook/File Photo

(Reuters) – Dow Chemical and DuPont won the blessing of the European Union for their $130 billion merger on Monday by agreeing to sell substantial assets including key research and development activities.

The European Commission had been concerned that the merger of two of the biggest and oldest U.S. chemical producers would leave few incentives to produce new herbicides and pesticides in the future. The deal is one of a trio of mega mergers that will reshape the industry and consolidate six companies into three.

Asset sales would ensure competition in the sector and benefit European farmers and consumers, the Commission said.

“We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment,” European Competition Commissioner Margrethe Vestager said in a statement.

“Our decision today ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides or innovation for safer and better products in the future.”

The two other big deals in the industry are ChemChina’s [CNNCC.UL] $43 billion bid for Syngenta and Bayer’s acquisition of Monsanto.

Dow and DuPont said they were still on target for $3 billion in cost synergies and $1 billion in growth benefits.

The deal is still to be approved by regulators in the United States, Brazil, China, Australia and Canada, but the companies said they were confident of clearance in all remaining jurisdictions.

“This regulatory milestone is a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent publicly traded companies,” Dow spokeswoman Rachelle Schikorra said in an email.

The EU approval may be a sign that U.S. regulators would follow suit because the agencies have traditionally coordinated on reviews and remedies for large multinational mergers, said Diana Moss, president of the American Antitrust Institute non-profit group.

However, any required asset sales would likely reflect antitrust concerns in the local marketplace.

“In the U.S. there are very high shares in corn and soybean seeds. We would expect those problems to be significant enough for enforcers in the U.S. to remedy them,” Moss said.

Weighty Decision

DuPont products are shown for sale in a hardware store in National City, California, December 9, 2015. Mike Blake/File Photo

The 1,000-page decision underlined the significance of the merger. In return for the EU green light, DuPont will divest large parts of its global pesticides business, including its global research and development organization.

The unit makes herbicides for cereals, oilseed rape, sunflower, rice and pasture and insecticides for insect control for fruits and vegetables.

Dow, in turn, will sell two acid co-polymer manufacturing facilities in Spain and the United States, as well as a contract with a third party through which it buys ionomers. The company has already found a buyer in South Korea’s SK Innovation.

“The main surprises here are the inclusion of the pesticides and the exclusion of any kind of seed assets,” Bernstein analysts wrote in a note. The analysts also said they had expected EU to be concerned about the concentration of seed sales, and that they would require Dow to divest its corn seeds business.

European Competition Commissioner Margrethe Vestager holds a news conference after Dow Chemical gained conditional EU antitrust approval on Monday for their $130 billion merger by agreeing to significant asset sales, one of a trio of mega mergers that will redraw the agrochemicals industry, in Brussels, Belgium March 27, 2017. Yves Herman

“We see the required divestments here as smaller than we originally expected, due to the exclusion of seed assets”.

Antitrust experts said the regulator’s demand to sell large swathes of R editing by Robin Emmott/Keith Weir/Sriraj Kalluvila

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10/09/2017

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How to Invest in Commodities: 12 Steps (with Pictures) #what #is


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How to Invest in Commodities

Commodities are raw materials used to make other products. These range from agricultural (wheat, corn, soy) to metals (gold, silver, copper) to energy (crude, natural gas, heating oil) and more. Importantly, commodities are standardized across producers with the use of minimum quality standards, called basic grades. This allows them to be interchangeable and grants each type of commodity a value that can fluctuate with the movements of the global market. [1] Commodities investing is the way in which investors, from individuals to large banks, can make money trading commodities and commodity securities by taking advantage of these movements. This article provides a simple overview of the complex world of commodities investing.

Steps Edit

Part One of Three:
Getting Ready to Invest Edit

Determine how much money you are ready to invest. The commodities market is a very risky place to invest your money, with potentially large gains balanced by equally large potential losses; ; commodities should therefore be a portion of your long-term holdings. Investing in commodities is safest as a part of a large and diversified portfolio that also includes other forms of investments. [2]

  • Commodities can actually reduce overall risk as a part of a diversified portfolio because their movements often are uncorrelated with the fluctuations of other types of securities. [3]
  • Before you invest in commodities, it is recommended that you first get involved in the more elementary areas of investing in the stock market. See how to Invest in the Stock Market for more information.

Open a brokerage account. In order to trade any securities, including commodities-based ones, you will need the help of a stockbroker to establish an account in which to hold and trade such securities. A brokerage account will allow you to deposit money that can then be invested in securities on your behalf by the brokerage firm. [4]

  • Note that this is not the case if you are planning on simply investing in physical commodities. For example, you can simply buy and store gold on your own as an investment, without entering the securities market at all. However, it is not realistic for most investors to take delivery of larger or more perishable commodities like oil or wheat, this may be more difficult. Investing in securities instead will spare you costs of shipping and storage that can be incurred while trading physical commodities.
  • As with any investment plan, first make sure you have enough saved in your emergency fund (3-6 months of expenses) for unexpected costs, such as job loss, illness, injury, etc. Also set aside in cash any amount needed for upcoming planned short-term expenses (automobile purchase, down-payment on a home, for example) in the next 1, 3 or even 5 years.

Deposit money into your brokerage account. Be conservative with your first commodities investment; there’s no need to put large sums of money into a market unknown to you. It’s best to gradually build up your position in the commodities market, as this lowers risk. [5] Alternately, you can sell off shares of stock of mutual funds that you already own to finance your commodity investment.


13/08/2017

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Markets data – stock market, bond, equity, commodity prices #stock #market,


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13/06/2017

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