Big it firms seen consolidating

18-Aug-2018 14:40

In the early 1900s, the first wave saw the mergers that created steel and oil monopolies, while there was massive deregulation in the 1980s and 1990s that led to the sixth wave in banking and telecommunications. 2015 saw the biggest year ever for M&As: There was .7 trillion in announced mergers and acquisitions, nearly doubling the amount from 2014.That trend continued in 2016, led by notable deals between AT&T and Time Warner, and Bayer and Monsanto. In recent years, the Federal Reserve has kept interest rates very low, which has boosted stock prices despite the weak economy.More debate is bound to unfold as terms of pending seed and chemical deals emerge. One factor driving both producers and the “Big Six” multinational agrochemical companies is vulnerability to weak commodity prices, says Garrett Stoerger, partner at Verdant Partners.

And the largest companies are growing faster, too: The 100 largest companies in the country are seeing more growth than the rest of their Fortune 500 peers.“But the question to ask is whether the same discoveries, products and benefits for the farmer could arise from licensing agreements between these companies, rather than through consolidation? “Consolidation has been taking place for many decades across all segments, from crop inputs to grain merchandising to food processing,” says Dean Cavey, managing partner at Champaign, Ill.-based business brokerage and consulting firm Verdant Partners.M&A is not the only way to collaborate on technologies.” As producers push forward into the headwinds of low commodity prices, they must also decide whether the latest leg of consolidation merits pushback against the vendors whose products they rely on—or acceptance of inevitable market ebbs and flows in agriculture. “Many of the transactions that have taken place during this time have involved privately held, family businesses owners who are looking to monetize their lifetime of investment in building their business.We’ll have to see if he continues his party’s affinity for deregulation, or steps in—through Twitter or otherwise—to discourage massive, competition-crushing deals.So far, he has appointed people who don’t appear interested in regulating business activity.

And the largest companies are growing faster, too: The 100 largest companies in the country are seeing more growth than the rest of their Fortune 500 peers.

“But the question to ask is whether the same discoveries, products and benefits for the farmer could arise from licensing agreements between these companies, rather than through consolidation? “Consolidation has been taking place for many decades across all segments, from crop inputs to grain merchandising to food processing,” says Dean Cavey, managing partner at Champaign, Ill.-based business brokerage and consulting firm Verdant Partners.

M&A is not the only way to collaborate on technologies.” As producers push forward into the headwinds of low commodity prices, they must also decide whether the latest leg of consolidation merits pushback against the vendors whose products they rely on—or acceptance of inevitable market ebbs and flows in agriculture. “Many of the transactions that have taken place during this time have involved privately held, family businesses owners who are looking to monetize their lifetime of investment in building their business.

We’ll have to see if he continues his party’s affinity for deregulation, or steps in—through Twitter or otherwise—to discourage massive, competition-crushing deals.

So far, he has appointed people who don’t appear interested in regulating business activity.

Plus, The upcoming presidency of Donald Trump makes the near future of M&As murky, as it’s unclear where he stands on a lot of the issues that would affect these deals.