Swiss agribusiness Syngenta has rejected $45bn acquisition offer from global seed technology major Monsanto for the second time citing unfavorable terms for shareholders.
If the proposed deal advances, an industry leader with combined sales of over $31bn will be created, Reuters reported citing sources.
Syngenta said that its board had unanimously rejected a 45% cash offer by Monsanto that would value Syngenta at CHF449 ($486.35) per share.
Commenting on the deal, Syngenta chairman Michel Demaré said: "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.
"While Syngenta's valuation is currently affected by short term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50% of our sales. Our integrated strategy has been particularly successful in these markets which in 2014 registered double digit growth rates for the fifth consecutive year, and which represent a major part of the future growth potential for our industry."
Syngenta aims for $1bn in savings in 2018, a move that will allow it to realize the full benefits of the integrated strategy and will ensure that increases in profitability are sustained for the benefit of Syngenta's shareholders.
In June last year, both the companies held preliminary talks to explore a $40bn takeover. However, no agreement was made due to concerns over the strategic fit, antitrust issues and relocation.
Image: Syngenta develops, produces, and markets seeds and plants developed using genetics and related technologies. Photo: courtesy of rakratchada torsap / freedigitalphotos.
