Syngenta’s shares rose 19% as a result
By Diego Flammini, Farms.com
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.
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.
"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 4th 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:
St. Louis, Missouri, USA
Price per stock share as of Friday, May 8th, 2015
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.