Syngenta Rejects $45 Billion Takeover Offer From Monsanto

Photo:Noah Friedman-Rudovsky

 The world’s largest maker of agrochemicals, Syngenta AG rejected a 41.7 billion Swiss-franc ($45 billion) takeover offer from Monsanto Co. because it undervalued the company and a merger would have “significant” execution risks.

“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,” Chairman Michel Demare said. “While Syngenta’s valuation is currently affected by short-term currency and commodity price movements, the business outlook is strong.

“The offer fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries”.