Chemical magnate DuPont has been lately strengthening its agriculture business by engaging in strategic acquisitions with agricultural technology companies, one of its latest acquisitions being, the takeover of San Francisco-based Granular,Inc.
The first quarter of the year 2017 witnessed one of the final approvals of one of most path-breaking mergers of all time – the merger between Dow Chemical Company and DuPont. One of the most awaited partnerships of the chemical cosmos, this planned merger between two of the industry behemoths has grabbed much of the attention in the last few months. According to reliable reports, this eagerly anticipated mega-union worth USD 150 million is likely to see the light of the day by the end of August 2017. Currently the impending deal has obtained the green signal from the U.S. antitrust authorities, subject to the divestures of some of their assets.
Following the announcement of a merger, DowDuPont is anticipated to make huge impacts on the biotechnology, agricultural, and chemical industries. The proposed merger is set to combine the expertise of both the companies and bring forth a greater efficacy in global agrochemical industry.
With a view to strengthen its position in the agro-based markets, DuPont has decided to purchase Granular, Inc., an agro-based technology company established in 2014, that provides analytical and software tools that helps the farmers to improve their sustainability, efficiency, and profitability. This acquisition will help DuPont achieve its goal of creating a digital agriculture ecosystem, which can enable easy sharing of commerce, services, and information amongst the farmers. In essence, DuPont’s Delaware-based agriculture spinoff worth USD 16 billion will be the one to accrue huge benefits from the Granular purchase.
Such acquisitions are certain to strengthen the competitive position of the chemical giant and provide efficient services to farmers, say experts. Many other crop companies are seen investing in this business, enabling the agricultural sector to create its unique identity, which will come off as a refreshing change amidst its increasingly dwindling popularity across the globe.
DuPont’s acquisition of Granular has prompted other chemical giants to engage in strategic collaborations. For instance, Bayer, a German chemical company is in talks to acquire Monsanto, and the eminent Chinese titan, ChemChina, has been on the news bandwagon since long, for its purchase of Syngenta. The approval of these three goliath-sized mergers may, in all likelihood, control more than 62% of the world’s patented seed business and 24% of all the overall pesticide sector.
DuPont’s USD 12 billion specialty product spinoff based in Delaware is further expected to reduce the state’s unemployment rate. It is quite critical for this spinoff to grow and generate innumerable job opportunities. As per sources, it is estimated to bring 1,700 high-salaried research and science jobs, curtailed by DuPont in 2016.
Ojaswita Kutepatil develops content for Market Size Forecasters. A mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. As an Associate Content writer, where she pens down write-ups pertaining to the market research industry...