Syngenta considering tie-ups with rivals
The Swiss crop chemicals business Syngenta is considering tie-ups with competitors, the Financial Times reported.
The newspaper quoted Syngenta chairman Michel Demare, who said that having rejected bid approaches from St Louis, Missouri-based competitor Monsanto, the Swiss company was now looking for deals that would combine its crop chemicals business with rivals’ agricultural seeds operations.
Demare said there is a widespread belief that the agricultural industry will undergo substantial change over the next six months and described discussions between leading agribusiness groups as “extremely active”.
Other than Syngenta, the sector's leading players include the agriculture businesses of Bayer, BASF and Dow Chemical, Dupont's seeds arm Pioneer and Monsanto, the item said.
Demare said Synenta has a strong leading position in crop chemicals, while Monsanto and Pioneer are the leading companies in seeds. A company that is strong in both crop chemicals and seeds will be the future leader in the sector, the chairman added.
Demare said the offers for Syngenta this year are likely to prompt further deals in the sector, according to the report.
Monsanto said on Tuesday, 17 November that it had reconsidered the potential acquisitions of competitors including Syngenta, the item noted.
Earlier reports had said ChemChina had tabled a bid for Syngenta at CHF 449 (USD 441) per share, or approximately USD 42bn, the article added.
Syngenta’s share price closed CHF 12.5 up at CHF 387.5 yesterday in Zurich, giving the company a market capitalisation of CHF 36.01bn.