Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Monsanto spells out bid for Syngenta takeover

Share this article

Monsanto spells out bid for Syngenta takeover
Syngenta sign at the company's Les Barges test site, near Vouvry in the canton of Valais. Photo: Fabrice Coffrini/AFP
22:19 CEST+02:00
US agriculture and seed giant Monsanto said Wednesday that it would sell Syngenta's seeds and traits assets to address regulatory concerns if the Swiss company accepts its takeover offer.

In a statement ahead of its annual investors conference, Monsanto outlined the strategy behind its unsolicited acquisition bid for Basel-based Syngenta to create a company "redefining the future of agriculture."
   
A combined company would create a giant in global agricultural biotechnology: Monsanto is number one in seeds and Syngenta ranks third.

Syngenta is the world leader in products to protect crops.
   
But Syngenta announced on May 8th that it had rejected Monsanto's offer of 449 Swiss francs per share, representing a 35 percent premium from the previous day's closing price in a deal valuing Syngenta at about 42 billion francs ($44.8 billion).
   
Syngenta at the time said the Monsanto offer undervalued its prospects and underestimated the risks in concluding a deal, including regulatory scrutiny.
   
Brett Begemann, Monsanto's president and chief operating officer who is presenting the rationale to investors Wednesday, will highlight the benefit of "adding Syngenta's leading crop protection portfolio to Monsanto's leading seed footprint" to create new value for farmers, the US company said.
   
Monsanto expressed confidence in its ability to address regulatory concerns.
   
"This includes the company's commitment to divest all of Syngenta's seeds and traits assets and certain overlapping chemistry assets, making Monsanto better positioned than anyone in the industry to create a new company committed to integrated, value-added solutions and enabling continued choice in the seed industry," Monsanto said.
   
In addition, the proceeds from the planned divestitures will bolster the combined company's capital structure, it said.
   
Monsanto shares were down 0.6 percent at $119.19 in early afternoon trade on the New York Stock Exchange.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university where students tackle real-world problems

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement