Monsanto Co reported that out of the race of mergers and acquisitions (M&A) in the sector of seeds and agrochemicals nearly a year after he made an offer for rival Syngenta AG.

Based in St. Louis company, which also reported lower revenue in the second quarter, now sees its best opportunities in smaller acquisitions, licensing agreements and partnerships, said CEO Hugh Grant.

Industry proceeds logically to further research or commercial partnerships in which the company is well prepared and more may not be considering large-scale mergers and acquisitions as a likely possibility, said Grant.

A step in the direction of Monsanto to Syngenta has caused a time of increased activity in M&A in the industry, where for a long time was dominated by six large companies. Syngenta in February accepted the offer to acquire the company ChemChina for $43 billion, while Dow Chemical and DuPont surprised megaclinium for $130 billion last year.

Low grain prices and savings of farmers has put pressure on profits, forcing the company to consider the possibility of acquiring. Monsanto, the world's largest seed company, has continued to advertise itself as the best partner in the industry.

After the proposal Syngenta failed, Monsanto turned to Bayer AG and has expressed an interest in the scientific agriculture division, including a potential acquisition valued at more than $30 billion.

Farmers in the USA have less to spend on everything from fertiliser to seed, as grain prices fell to five-year lows, and revenues fell to the lowest level of 2002. This has forced Monsanto and DuPont Pioneer to offer the biggest discounts in the last six years.

Every year Monsanto produces a line of new products, which allows you to set a price more than in the previous year, analysts said.

The company's net income fell to $1.06 billion, or 2,41 USD per share, in the quarter ended February 29, from $1.43 billion, or 2,92$ per share, a year earlier.

Monsanto reiterated its target for 2016 earning per share $4,40-5,10 after cut its Outlook last month amid currency problems and enhance price competition.

Net sales decreased by 12.8% to $a 4.53 billion.

Source: Thomson Reuters