While Monsanto Company continues to believe a merger with Syngenta would create tremendous value for shareowners of both companies and farmers, it has dropped its bid to take over its Swiss rival.
Syngenta says Monsanto’s enhanced proposal did not meet Syngenta’s financial expectations. Without a basis for constructive engagement from Syngenta, Monsanto will not be pursuing the matter, it announced today.
Monsanto confirmed it communicated a revised proposal on Aug. 18 to Syngenta to combine the two companies. The enhanced proposal, subject to due diligence and other customary conditions, included a number of elements.
In a statement from Syngenta, the company says the revised proposal from Monsanto “significantly undervalued [Syngenta] and was fraught with execution risk.”
“We engaged with Monsanto in good faith and highlighted those key issues which required more concrete information in order to continue a dialogue. We take note of Monsanto’s decision,” Syngenta chairman Michel Demaré says. “Our board is confident that Syngenta’s long-term prospects remain very attractive with a leading portfolio and a promising pipeline of new products and technologies.”
More information is available here: http://news.monsanto.com/press-release/corporate/monsanto-reaffirms-opportunity-standalone-growth-plan-and-ability-lead-next-
