Largest Chemical Company in the World Would Be An Excellent Fit
THE SUNDAY SIZE-UP
Good Afternoon, Bonsoir, Guten Abend, Buenas Noches, Ni Hao,
Readers, yesterday, Aug. 3, 2013, we speculated how an independent Pioneer, IPO'd or spun off or sold off, might monetise the assets of DuPont's seed house for the benefit of long-suffering DuPont shareholders. Sadly, the destructive duo of Chad Holliday and his hand-picked protege Ellen Kullman have left the DuPont Company in a unalloyed mess after 15 years of shabby management, and over-ripe for a break-up.
Who might be interested in acquiring Pioneer? For starters, what about the largest chemical and materials enterprise on the planet? BASF based in Germany is three times the size of the much shrunken and shrinking DuPont. BASF towers over DuPont in revenues ($104 billion v. $35 billion in 2012) and stockholder equity ($34 billion v. $12 billion as of 03-31-13).
While BASF leaders proudly proclaim they are in the business of making and selling chemicals, they have for some time been investing in seeds and biotechnological advancement of seeds. They have also partnered with the biggest and best seed company on the globe, superior-managed Monsanto, making for an unbeatable combination. Another dark house candidate: Bayer. We believe Dow Chemical despite its strength and size (twice as large as the diminished DuPont) would not want to incur the debt at this time to buy Pioneer.
Speculating out loud, we believe DuPont Pioneer at the right price would be an excellent fit for BASF, and redound to the benefit of BASF shareholders as well as DD shareholders.
Merely THE SUNDAY SIZE-UP digitally penned by one individual retail investor and long-time student of DuPont in decline...funfun..