Syngenta rejects Monsanto's $45 billion takeover offer

Syngenta said in a statement Friday that the company’s board of directors has unanimously rejected Monsanto’s takeover offer because it is not in the best interests of Syngenta, its shareholders and stakeholders.

The board said the unsolicited proposal from Monsanto to buy the company for about $45 billion fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.

Syngenta Chairman Michel Demaré said the company is the world leader in crop protection, number three in seeds and the first to introduce integrated solutions for growers.

“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 said.

He said that, while Syngenta’s valuation is currently affected by short-term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50 percent of sales.

“Our integrated strategy has been particularly successful in these markets, which in 2014 registered double-digit growth rates for the fifth consecutive year and represent a major part of the future growth potential for our industry,” Demaré said. “Recently launched new products are achieving rapid sales growth globally as growers demand the latest technologies, and we have a strong pipeline of innovative crop protection products in development, which have total peak sales potential of over $3 billion.”

Organizations in this story

Syngenta Basel, Switzerland

Get notified the next time we write about Syngenta!