Canada Will Buy Kinder Morgan, Inc.’s (NYSE:KMI) Trans Mountain pipeline for C$4.5B- Monsanto (NYSE:MON)


Kinder Morgan, Inc. (NYSE:KMI) luring active investment momentum, shares an increase 0.94% to $16.04. Canada will buy Kinder Morgan Canada Ltd’s (KML) Trans Mountain pipeline for C$4.5 billion ($3.5 billion), the government said on Tuesday, hoping to save a project that faces formidable political and environmental opposition.

Finance Minister Bill Morneau said purchasing the pipeline was the only way to ensure that a

planned expansion could proceed. The pipeline, running from the oil sands of Alberta to a port in the Pacific province of British Columbia, would allow Canadian crude to gain greater access to foreign markets and higher prices.

Kinder Morgan Canada gave Ottawa until May 31 to come up with reassurances it could press ahead with plans to more than double the capacity of the existing pipeline amid efforts by British Columbia to block construction. The company also faced opposition from environmentalists and aboriginal groups who worried about the pipeline spilling its tar-like heavy oil.

“When we are faced with an exceptional situation that puts jobs at risk, that puts our international reputation on the line, our government is prepared to take action,” Morneau told reporters. He said the pipeline purchase provided the federal jurisdiction needed to overcome British Columbia’s opposition, but gave no details of how this would work.

The federal government can in theory step in and disallow any provincial laws that British Columbia might use to block the pipeline, but this provision in the Canadian constitution has not been used since the 1940s. The total volume of 26.45 Million shares held in the session was surprisingly higher than its average volume of 15856.64 shares. EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at -319.80%, and looking further price to next year’s EPS is 11.41%. While take a short look on price to sales ratio, that was 2.58.

Shares of Monsanto Company (NYSE:MON) runs in leading trade, it surging 0.72% to trade at $127.41. The firm has price volatility of 0.81% for a week and 0.48% for a month. Its beta stands at 0.95 times. Bayer AG won U.S. antitrust approval for its $66 billion takeover of Monsanto Co., clearing the last major regulatory hurdle to forming the world’s biggest seed and agricultural-chemicals provider after a nearly two-year global review.

The companies reached a settlement with the Justice Department that resolves the government’s concerns that the merger as initially structured would harm consumers and farmers, the U.S. said in a statement Tuesday. The agreement requires the sale of assets to BASF SE that Bayer has previously announced. The divestiture package is worth about $9 billion, the largest in a U.S. merger enforcement case, the government said.

“America’s farm system is of critical importance to our economy, to our food system, and to our way of life,” MakanDelrahim, the head of the department’s antitrust division, said on a call with reporters. “American farmers and consumers rely on head-to-head competition between Bayer and Monsanto.”

For Bayer, acquiring Monsanto is the last step in a corporate transformation as the 154-year-old company shed its plastics business and remade itself as a life-science company with equally-sized health and agriculture units. Once the deal is through, three global behemoths will dominate the world’s agriculture industry, a prospect that has left farmers worried about the possibility of higher prices and

less choice. Narrow down four to firm performance, its weekly performance was 1.20% and monthly performance was 1.87%. The stock price of MON is moving up from its 20 days moving average with 1.66% and isolated positively from 50 days moving average with 3.67%.


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