Thursday 28 April 2011

Wall Street Journal: As Food Prices Rise So To Do Food Business Valuations

Download your FREE Agricultural Investment Guide here

After Anglo-Australian miner BHP Billiton made an eventually unsuccessful US$38.6 billion offer for agriculture-focused Potash Corp., deal makers began adding food options to their menus.

In Asia, the result has been a rich diet of food company deals, with more expected—and raising a question about whether investors might eventually end up with indigestion.

Higher prices in both raw and processed soft commodities—caused by growing Asian demand, erratic weather, and a global push toward biofuels—has led to a spate of food-focused merger deals and initial public offerings. Food quality concerns in China and fears of radioactive exposure in products in Japan...

Download your FREE Agricultural Investment Guide here

Source: Wall Street Journal