Syngenta Rejects $45 Billion Monsanto Takeover Bid

Agrochemicals firm Syngenta on Friday rejected a $45 billion takeover offer from Monsanto, saying the offer undervalued the Swiss firm and did not fully take into account regulatory risks, reports Katharina Bart and Pamela Barbaglia of Reuters.

Sources had told Reuters overnight that the two agricultural companies were working with investment banks on a takeover deal that would create an industry behemoth with combined sales of more than $31 billion.

Advertisement

But on Friday Syngenta said its board had unanimously rejected a 45% cash offer by Monsanto that would value Syngenta at 449 Swiss francs ($486.35) per share.

Top Articles
Top 10 Ag Retailers With the Most Revenue in Precision Ag Services

“The offer fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries,” Syngenta said in a statement.

Syngenta shares rose 17% to 390 Swiss francs on Friday after the bid approach was confirmed.

Swiss company Syngenta had been working with Goldman Sachs to assess the merits of a sale to the world’s largest seeds company Monsanto, which is being advised by Morgan Stanley , the sources had earlier told Reuters.

Check out the full Reuters.com article here.

0
Advertisement