According to reports, BASF is lining up financing in preparation for a potential takeover offer for Syngenta, while a recent poll of Syngenta investors finds they favor the Swiss agribusiness company negotiating with Monsanto on an acquisition deal.
Reuters reports that BASF has lined up a loan package from multinational banks in the event of a takeover opportunity.
“A takeover of Syngenta by BASF would be likely to face significant antitrust issues but could also prevent the seeds and pesticides market being reshaped by rivals,” Reuters reports.
According to the St. Louis Business Journal, a survey done by investment research firm Sanford C. Bernstein and Co. Inc. found that 92 percent of current and former Syngenta investors polled favored sitting at the table with Monsanto.
Syngenta previously rejected a takeover offer from Monsanto, and last week, Bayer’s chief executive officer Marijn Dekkers responds to recent rumours and said the company has no interest in acquiring Syngenta.
“I would say that Syngenta is not a logical acquisition target for Bayer because there is quite some overlap in the businesses,” Dekkers told CNBC. “Both Syngenta and Bayer are very strong in chemical crop protection: herbicides, insecticides, fungicides that farmers use to fight off disease for their crops. So no, that is not a logical target for Bayer.”
