DD) announced Sunday it would buy Danish food ingredients company Danisco A/S (PINK: DNSOF) for $6.3 billion to broaden its presence in the fast-growing biofuels and food sectors.
DuPont will pay $5.8 billion cash and also assume $500 million in Danisco's debt. The company expects the deal to establish it as a leader in industrial biotechnology and help it successfully address global issues in food production and fossil fuel reduction.
"Danisco has two well-positioned global businesses that strongly complement our current biotechnology capabilities, R&D pipeline, and specialty food ingredients, a combination that offers attractive long-term financial returns," DuPont Chief Executive Officer Ellen Kullman said Sunday in a statement. "This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings."
Biofuels
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Hot Stocks: DuPont (NYSE: DD) Shoots for Top Spots in Biofuels and Food Sectors
Profit From the First Biofuel Winner – Before it Goes Public
Weeds are hardly my favorite flora. My hay fever doesn't like them and neither does my lawn. But a flax called camelina - needing little nitrogen and water - may just be the first big winner in renewable biofuels.
It is going to provide investors with a whole new way to play the renewable energy market. And its impact will be, quite literally, up in the air.
Anybody who flies has been feeling the pinch of exploding ticket prices. Having jetted over a quarter of a million miles in the last 18 months, I can attest to the connection between rising fuel prices and ticket hikes. And without a major change in how we source jet fuel, this problem will simply get worse - especially with ridership slowly returning as the crisis bottoms out.
Jet fuel is already imported in greater volume, and the refineries that can provide it reliably worldwide are limited. That's because refining puts jet fuel (which is really high-level kerosene) among the so-called "middle distillates" - along with diesel and low-sulfur heating oil. But prioritizing the need for high-octane gasoline ("light distillates") has taken up more of the available refinery capacity.
They're producing less diesel and jet fuel than the market requires, pushing up the price.
And jet biofuel may be an answer.
It's hardly theoretical.
It is going to provide investors with a whole new way to play the renewable energy market. And its impact will be, quite literally, up in the air.
Anybody who flies has been feeling the pinch of exploding ticket prices. Having jetted over a quarter of a million miles in the last 18 months, I can attest to the connection between rising fuel prices and ticket hikes. And without a major change in how we source jet fuel, this problem will simply get worse - especially with ridership slowly returning as the crisis bottoms out.
Jet fuel is already imported in greater volume, and the refineries that can provide it reliably worldwide are limited. That's because refining puts jet fuel (which is really high-level kerosene) among the so-called "middle distillates" - along with diesel and low-sulfur heating oil. But prioritizing the need for high-octane gasoline ("light distillates") has taken up more of the available refinery capacity.
They're producing less diesel and jet fuel than the market requires, pushing up the price.
And jet biofuel may be an answer.
It's hardly theoretical.
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