Monsanto Still Has Heart Set on Biggest Chemical Deal: Real M&A
2015-04-30 21:40:18.935 GMT
(For a Real M&A column news alert: {SALT REALMNA <GO>}.)
By Brooke Sutherland
(Bloomberg) -- Monsanto Co. is willing to give the biggest
acquisition in the chemical industry -- and one of the more
expensive -- another shot.
The $54 billion U.S. seed company has approached Syngenta
AG about a takeover almost a year after the two broke off merger
talks, according to people familiar with the matter. With
Syngenta valued at $31 billion, a deal would be the largest ever
struck for a chemical maker, even before accounting for a
takeover premium.
The biggest deal targeting a chemical producer to date was
the combination of Hoechst and Rhone-Poulenc SA, a more than $20
billion deal that created drugmaker Aventis SA in 1999. The
largest transaction among agricultural-chemical makers was the
merger between Russian potash producers OAO Uralkali and OAO
Silvinit in 2011, valued at less than $10 billion.
Syngenta trades at about 12.5 times its earnings before
interest, taxes, depreciation and amortization in the last 12
months. Large chemical companies purchased in the last decade
have commanded a median multiple of about 9 times, so a purchase
of Syngenta would also rank as one of the industry’s more
expensive deals, according to data compiled by Bloomberg.
For Related News and Information:
Monsanto Is Said to Approach Syngenta Again About a Takeover
Novozymes Tie-Up With Monsanto Raises Prospect of Joint M&A
No Monsanto, No Problem for Syngenta on Path to Deal: Real M&A
Bloomberg Intelligence, agricultural chemicals: BI AGCHG <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Brooke Sutherland in New York at +1-212-617-0448 or
bsutherland7@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Mohammed Hadi
2015-04-30 21:40:18.935 GMT
(For a Real M&A column news alert: {SALT REALMNA <GO>}.)
By Brooke Sutherland
(Bloomberg) -- Monsanto Co. is willing to give the biggest
acquisition in the chemical industry -- and one of the more
expensive -- another shot.
The $54 billion U.S. seed company has approached Syngenta
AG about a takeover almost a year after the two broke off merger
talks, according to people familiar with the matter. With
Syngenta valued at $31 billion, a deal would be the largest ever
struck for a chemical maker, even before accounting for a
takeover premium.
The biggest deal targeting a chemical producer to date was
the combination of Hoechst and Rhone-Poulenc SA, a more than $20
billion deal that created drugmaker Aventis SA in 1999. The
largest transaction among agricultural-chemical makers was the
merger between Russian potash producers OAO Uralkali and OAO
Silvinit in 2011, valued at less than $10 billion.
Syngenta trades at about 12.5 times its earnings before
interest, taxes, depreciation and amortization in the last 12
months. Large chemical companies purchased in the last decade
have commanded a median multiple of about 9 times, so a purchase
of Syngenta would also rank as one of the industry’s more
expensive deals, according to data compiled by Bloomberg.
For Related News and Information:
Monsanto Is Said to Approach Syngenta Again About a Takeover
Novozymes Tie-Up With Monsanto Raises Prospect of Joint M&A
No Monsanto, No Problem for Syngenta on Path to Deal: Real M&A
Bloomberg Intelligence, agricultural chemicals: BI AGCHG <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Brooke Sutherland in New York at +1-212-617-0448 or
bsutherland7@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Mohammed Hadi