Monsanto bids $45 billion for Syngenta

May 08, 2015

Syngenta’s shares rose 19% as a result

American company Monsanto, the world’s largest seed group and owner of the Roundup brand of herbicides, bid an astounding $45 billion to purchase Syngenta, the world’s largest agrichemicals group whose headquarters are in Switzerland.

Monsanto

Even though the merger of the two companies would create a titan among agricultural companies, Syngenta has rejected the bid citing that it’s not in their best interests to accept the offer.

Syngenta’s team “unanimously determined to reject Monsanto's proposal as it is not in the best interests of Syngenta, its shareholders and its stakeholders,” they said in a press release. “The offer fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.”

As a result of Monsanto putting in their bid, shares of Syngenta stocks skyrocketed from $72.55 per share on Monday to $86.39 per share on Friday morning – but still not enough for Syngenta to consider accepting the offer as they look towards the future.

Syngenta

"In 2015, we are on track to achieve the first $265 million of savings from our Accelerating Operational Leverage Program, and we are targeting savings of $1 billion in 2018. This will allow us 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."

News of the possible merger made rounds in agricultural circles on Monday, May 4^th when it was discovered that Monsanto was interested in acquiring Syngenta.

In 2014, Monsanto attempted a $34 billion takeover of Syngenta that, if proved successful, would’ve seen Monsanto move their offices to Switzerland.

A very brief look at Monsanto and Syngenta:

	Monsanto	Syngenta
Headquarters	St. Louis, Missouri, USA	Basel, Switzerland
Price per stock share as of Friday, May 8^th, 2015	$118.65	$86.39
Sales (2014)	$15.43 billion	$14.71 billion
Founded	1901	1999

Join the conversation and tell us what you think of Monsanto’s attempt to buy Syngenta. Also tell us what you think about Syngenta’s decision to reject the offer and what that could mean for you as a farmer going forward.

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