Monsanto Ups Bid for Syngenta to $47 Billion



Monsanto Ups Bid for Syngenta to $47 Billion



ST. LOUIS, MO - Monsanto is continuing its push to acquire Switzerland's Syngenta AG, raising its offer by over $2 billion by valuing the company at around $47 billion.

As we’ve previously reported, Syngenta has now rejected offers from Monsanto valued at over $45 billion twice now, saying that the offer, “fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks.”  

Syngenta's Interaction Center in Stein Switzerland

This latest offer, however, has analysts buzzing and Syngenta's share prices jumping. In after-hours trading, Syngenta's stock was up approximately 5 percent to $81.00 as of 6:17 PM EDT on August 24. 

According to Reuters, investors have been pushing Syngenta to sit down with Monsanto to press for a more profitable offer. Cedric Lecamp, Senior Investment Manager at Pictet Asset Management, a Syngenta investor, told Reuters earlier this year he thought a deal could get done above 500 Swiss francs.

A report from Bloomberg seems to echo this sentiment, saying a Sanford C. Bernstein Ltd. survey found that 92 percent of Syngenta’s investors would like management to continue negotiations with Monsanto, and would accept a 5 percent higher offer. 

Reuters reports that the new offer has also increased in the break-up fee to $3 billion up from $2 billion if the transaction is blocked by regulators or falls apart for other reasons. A source has also told Reuters that likely this won't be Monsanto’s final offer for the company, saying this may open further negotiations.

A representative for Syngenta, the world's largest maker of farming pesticides, told Reuters on Monday, "There is no comment to make." A spokeswoman for Monsanto also declined to comment.

Monsanto Syngenta



Companies in this Story


Syngenta

Syngenta is one of the world's leading companies with more than 53,000 employees in over 100 countries dedicated to…


Monsanto

Monsanto is a sustainable agriculture company. We deliver agricultural products that support farmers all around the world…