Monsanto Is Said to Approach Syngenta Again About a Takeover (3)
2015-04-30 23:02:52.76 GMT
(Updates with Bayer’s no comment in seventh paragraph.)
By Andrew Noël, Aaron Kirchfeld and Ed Hammond
(Bloomberg) -- Monsanto Co., the world’s largest seed
company, has approached Syngenta AG about a takeover, almost a
year after a previous attempt fell apart, according to people
familiar with the matter.
Monsanto has discussed its interest with Syngenta in recent
weeks, said two of the people, asking not to be identified
discussing private information. Syngenta, which has a market
value of about 29 billion Swiss Francs ($31 billion), has
concerns about a combination, which would face antitrust
hurdles, the people said, and the companies may fail to reach an
agreement, they said.
Combined with Syngenta, Monsanto would become the largest
player in the world for both seeds and crop chemicals and a
formidable competitor to Bayer AG, BASF SE and Dow Chemical Co.
Basel-based Syngenta is the world’s largest maker of crop
chemicals whereas St. Louis-based Monsanto is the largest maker
of seeds and dominates the global market for genetically
modified crops like corn and soybeans.
Monsanto jumped as much as 3.6 percent in afterhours
trading, after closing at $113.96 in New York, giving the
company a market value of $54 billion. A spokeswoman for
Monsanto declined to comment, while a representative for
Syngenta had no immediate comment when reached by phone.
Earlier Effort
The companies held preliminary talks last year with
advisers about a combination, before Syngenta’s management
decided against negotiations, people familiar with the matter
said at the time. No agreement was made after concerns were
raised about the strategic fit, antitrust issues and relocating
the company.
To address antitrust issues, Monsanto has planned for a
deal that would include a sale of portions of the combined
business, one of the people said Thursday. The U.S. company last
year reached out to potential bidders of those assets, including
Bayer, this person said.
A spokesman for Bayer said the company doesn’t comment on
rumors or speculation.
Seed Probes
Monsanto’s dominance in the seed industry was the subject
of U.S. antitrust probes at the federal and state levels a few
years ago. The U.S. Department of Justice’s antitrust division
dropped its probe into possible anti-competitive practices in
the seed industry in 2012, and a month later at least seven
states led by Iowa ended their five-year investigation without
taking action.
Opposition to genetically modified crops led BASF SE in
2012 to announce a relocation to the U.S. from Germany of the
plant-science division that develops such crops.
During the talks last year, a purchase of Syngenta was --
in part -- viewed as an opportunity for Monsanto to move its tax
location to Switzerland, where corporate tax rates are lower
than in the U.S. Such deals, known as inversions, have since
come under increased scrutiny from U.S. legislators, and it’s
not certain that any revived offer would be structured to move
Monsanto’s official address.
For Related News and Information:
Monsanto Said to Have Considered $40 Billion Syngenta Deal
Monsanto Says States Closed 5-Year Probe of Seeds and Herbicide
Top Stories:TOP<GO>
--With assistance from Jack Kaskey in Houston, Ruth David in
London and Jeffrey McCracken in New York.
To contact the reporters on this story:
Andrew Noël in London at +44-20-3525-2304 or
anoel@bloomberg.net;
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman
2015-04-30 23:02:52.76 GMT
(Updates with Bayer’s no comment in seventh paragraph.)
By Andrew Noël, Aaron Kirchfeld and Ed Hammond
(Bloomberg) -- Monsanto Co., the world’s largest seed
company, has approached Syngenta AG about a takeover, almost a
year after a previous attempt fell apart, according to people
familiar with the matter.
Monsanto has discussed its interest with Syngenta in recent
weeks, said two of the people, asking not to be identified
discussing private information. Syngenta, which has a market
value of about 29 billion Swiss Francs ($31 billion), has
concerns about a combination, which would face antitrust
hurdles, the people said, and the companies may fail to reach an
agreement, they said.
Combined with Syngenta, Monsanto would become the largest
player in the world for both seeds and crop chemicals and a
formidable competitor to Bayer AG, BASF SE and Dow Chemical Co.
Basel-based Syngenta is the world’s largest maker of crop
chemicals whereas St. Louis-based Monsanto is the largest maker
of seeds and dominates the global market for genetically
modified crops like corn and soybeans.
Monsanto jumped as much as 3.6 percent in afterhours
trading, after closing at $113.96 in New York, giving the
company a market value of $54 billion. A spokeswoman for
Monsanto declined to comment, while a representative for
Syngenta had no immediate comment when reached by phone.
Earlier Effort
The companies held preliminary talks last year with
advisers about a combination, before Syngenta’s management
decided against negotiations, people familiar with the matter
said at the time. No agreement was made after concerns were
raised about the strategic fit, antitrust issues and relocating
the company.
To address antitrust issues, Monsanto has planned for a
deal that would include a sale of portions of the combined
business, one of the people said Thursday. The U.S. company last
year reached out to potential bidders of those assets, including
Bayer, this person said.
A spokesman for Bayer said the company doesn’t comment on
rumors or speculation.
Seed Probes
Monsanto’s dominance in the seed industry was the subject
of U.S. antitrust probes at the federal and state levels a few
years ago. The U.S. Department of Justice’s antitrust division
dropped its probe into possible anti-competitive practices in
the seed industry in 2012, and a month later at least seven
states led by Iowa ended their five-year investigation without
taking action.
Opposition to genetically modified crops led BASF SE in
2012 to announce a relocation to the U.S. from Germany of the
plant-science division that develops such crops.
During the talks last year, a purchase of Syngenta was --
in part -- viewed as an opportunity for Monsanto to move its tax
location to Switzerland, where corporate tax rates are lower
than in the U.S. Such deals, known as inversions, have since
come under increased scrutiny from U.S. legislators, and it’s
not certain that any revived offer would be structured to move
Monsanto’s official address.
For Related News and Information:
Monsanto Said to Have Considered $40 Billion Syngenta Deal
Monsanto Says States Closed 5-Year Probe of Seeds and Herbicide
Top Stories:TOP<GO>
--With assistance from Jack Kaskey in Houston, Ruth David in
London and Jeffrey McCracken in New York.
To contact the reporters on this story:
Andrew Noël in London at +44-20-3525-2304 or
anoel@bloomberg.net;
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman