Why Bayer is Acquiring Monsanto

German health care and chemicals titan Bayer AG,a prominent maker of aspirin,is offering 62 billion dollars for its American peer Monsanto,a seed and agricultural chemicals specialist,or 122.00 a share.It would be the biggest ever acquisition of a foreign company by a German firm.Monsanto rose 4.41% to 106.00 on the news.*
Bayer is afraid of being left out as the space is consolidating around it,said John Oxgaard,chemicals equity analyst at Sanford Bernstein.It's a good time to consolidate the industry.The big force is the end of the ag cycle.When farmers incomes are low,they just don't have the money for their inputs and will negotiate over costs.*
Bayer doesn't have the cash for Monsanto;they will have to issue equity.I am skeptical about the deal.Ultimately,I think there is a gap between what Bayer is willing to pay and Monsanto is willing to accept.*
Monsanto is one of the the most hated companies in the world,being responsible for the development and marketing of Genetically Modified Organisms.It is kind of surprising that a European company is making this bid.If they do succeed,I expect the Monsanto name will probably disappear rather quickly.Although Bayer had been in the GMO business itself before abandoning the effort in the face of withering criticism,it doesn't seem to have been tainted the way Monsanto was,Mr.Oxgaard noted.*
Agricultural chemicals would make up nearly half of Bayer's portfolio,if the deal goes through.*
Monsanto Inc (MON),Bayer AG (Madrid:BAY)

Asia This Day:Chinese Oil Majors Strong;Julia Gillard's GDP Vision

Sinopec Corporation beat earnings estimates on its refining business.The company,an integrated oil and petrochemical firm,is China's largest refiner and had Q3 net income of 2.93 billion dollars,versus an estimate of 2.27 billion.
Petrochemical prices rebounded,and demand for petrochemicals will continue to rise.
Sinopec's profit growth was up 12.4%.It was upgraded to outperform at Sanford C Bernstein.
CNOOC Ltd.,China's largest oil and gas producer,had much stronger product growth in Q3 and this will continue into 2013.The Canadian government must make a decision on the CNOOC-Nexen merger by mid-November.We think it's gonna go through,said  Bernstein's Neil Beveridge.It's in Canada's interest to have good business ties with China.We like both CNOOC and Sinopec.
Nexen,Inc. is an oil and gas exploration and  production firm with operations in the UK North Sea;offshore West Africa;the Gulf of Mexico;and Western Canada.
Australia is aiming to raise its GDP per capita to 73,000 dollars per person and reach the global top ten of that measure.It is currently number 13 on the GDP per capita list.
Austarlia wants to boost the Asian component of its GDP to one-third.It would like to give every student the chance to learn an Asian language.It's a vision,the increasingly popular Prime Minister Julia Gillard said;it's gonna take some time to deliver.
Sinopec Corporation(SNP),CNOOC Ltd.(CEO),iShares MSCI Australia Index Fund(EWA)