Syngenta rejects fresh takeover approach by Monsanto

08 Jun 2015

Syngenta AG, rejecting a fresh takeover approach by Monsanto Co, said the US company had failed to convince it of the merits of a merger and was only repeating the ''same indequate price'' with the same flawed view of the execution risks.

The only change in Monsanto's proposal since the 18 April proposal was a ''wholly inadequate'' break up fee of $2 billion, the Basel, Switzerland-based maker of agrochemicals and seeds said in a release.

''The respective outside counsel of Syngenta and Monsanto met on three separate occasions, subsequent to our rejection letter, to discuss in good faith the regulatory challenges,'' Syngenta said.

''These meetings have reinforced Syngenta's assessment of the regulatory risks and Monsanto has made no attempt to seriously address these concerns. Monsanto continues to gloss over these fundamental transaction risks.''

Monsanto, the world's largest seed company, was faced with challenges both by way of regulatory scrutiny and consumer opposition.

According to analysts, the drive by the producer of Roundup herbicide to diversify its business was making Syngenta a compelling target.

In the event Monsanto took over Syngenta, it would gain a broad portfolio of fungicides, insecticides and other herbicides.

Monsanto offered on Sunday to pay a $2-billion reverse break-up fee to Syngenta in the event if failed to obtain global regulatory approvals for an acquisition.

Syngenta had earlier rejected a $45 billion offer, but it continued to pursue a deal.