Saxo’s Peter Garnry says this is another example of US firms, such as pharmaceuticals, trying to avoid corporate taxes by moving their headquarters to Europe. He points out that an American company is unable to repatriate its cash flow into the US without paying a high tax rate.

Although Monsanto is a successful company in its own right, Garnry says that earlier this year it was under performing in the S&P 500. Although the company has come back up, he believes its valuation is 30 percent above the market price. With falling corn prices (the current corn crop has dropped 14 percent in 5 weeks), the demand for Monsanto’s seeds will be reduced. This, he believes, will impact results in the short term although he still thinks it’s a good long term bet.