Syngenta announced the purchase terms of the unsolicited offer and confirmed the Syngenta board of directors’ unanimous rejection. The offer reports a purchase price of 449 Swiss francs per share (about $45 billion). The press release categorizes the offer as fundamentally undervaluing Syngenta’s interests.
If the offer had been accepted, it would have made Monsanto the largest player in both seeds and crop chemicals. Earlier reports of the proposed merger brought speculation about antitrust issues if the sale had been successful. Monsanto’s seed division was the subject of an antitrust probe a few years ago, but the U.S. Department of Justice’s antitrust division dropped the investigation into anti-competitive practices in the seed industry.
A Bloomberg report notes, “The companies held preliminary talks last year with advisers about a combination before Syngenta’s management decided against negotiations, people familiar with the matter said at the time. No agreement was made after concerns were raised about the strategic fit, antitrust issues and relocating the company.”
Monsanto is the largest seed company for genetically modified crops and dominates the global market.
Syngenta Chairman Michel Demaré says, “Monsanto’s proposal does not reflect the outstanding growth prospects of Syngenta’s integrated strategy and the significant future value potential of the company’s crop-focused innovation and market leading positions.”
Demaré cited Syngenta’s double-digit growth rates over five consecutive years, with strong emerging markets accounting for more than 50 percent of sales.
Syngenta reports more than 29,000 employees in 90 countries. FG
