Syngenta has confirmed it recently received an offer from Monsanto to take over its operations, but has rejected it.
“Syngenta’s board of directors, in conjunction with its legal and financial advisers, has undertaken a thorough review of all aspects of Monsanto’s offer and has unanimously determined to reject Monsanto’s proposal as it is not in the best interests of Syngenta, its shareholders and its stakeholders,” Syngenta says in a statement.
The offer “fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries,” the company adds.
For several days, media reports have quoted unnamed sources as saying Monsanto had approached Syngenta about a takeover. Syngenta’s statement is the first confirmation that the reports were true.
Monsanto issued a follow-up statement confirming it had approached Syngenta with a private proposal to Syngenta`s board of directors to acquire Syngenta for 449.00 CHF per share.
“Monsanto believes the combined company would be uniquely positioned to deliver a comprehensive suite of integrated solutions to farmers around the world and to accelerate technological innovation through precision agriculture and advanced research and development capabilities aimed at increasing the world`s food supply in a sustainable fashion,” the company says in its statement.
“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,” Syngenta chairman Michel Demaré says.