Monsanto committed to seeking mutually beneficial union with Syngenta

Monsanto Co. said in a statement Tuesday that it is committed to negotiating a mutually beneficial combination as part of its offer to buy Syngenta in a cash and stock transaction valued at $45 billion.

Monsanto recently sweetened the offer, stating that it was willing to pay Syngenta $2 billion as a reverse break-up fee, if it were unable to obtain global regulatory approvals for an acquisition.

Syngenta’s top executives sent a letter to shareholders and other stakeholders on Monday that said the sweetened takeover offer from Monsanto contained the same deficiencies that caused Syngenta to reject Monsanto’s earlier proposal.

Monsanto’s offer would provide Syngenta shareholders with a premium of more than 43 percent over Syngenta’s share price on April 30, and a more than 45 percent premium over the company’s 52-week, volume-weighted average share price. Monsanto also said that a marriage of the companies would further benefit shareholders.

Monsanto Chairman and CEO Hugh Grant said combining Monsanto's global seeds, traits and information technology capabilities with Syngenta's global position in crop protection chemicals would create significant value for growers to ultimately meet the needs of broader society.

"We're encouraged by the reaction to our proposal from our respective shareowners, customers and other stakeholders," Grant said. “At the same time, it is disappointing that Syngenta has not engaged in substantive discussions about the many benefits of this combination, including the benefits for farmers around the world. We remain committed to unlocking the opportunity of this combination and pursuing constructive conversation with Syngenta's management and board.”

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