Monsanto pulls out of Syngenta takeover
Monsanto is no longer interested in acquiring Swiss rival Syngenta, since the Swiss indicated that the offer of 470 Swiss francs per share offered this week was too low and not according to expectations.
Earlier this week, Monsanto raised its bid for Syngenta to $47 billion (€ 41.2 billion), according to Bloomberg. In May Monsanto offered even $40 billion, but Syngenta rejected that offer because it assumed that this was the opening bid.
The second bid by Monsanto, last Monday, was 470 Swiss francs per share, which would be paid partly in cash and partly in Monsanto shares. This bid was 5 percent per share higher than the previous bid of 449 Swiss francs. Compared to the first bid, the proportion of cash was also increased, from 45 to 55 percent. In the second offer, an amount of $3 billion was reserved in the event that the acquisition was cancelled due to competition rules.
According to Bloomberg, Syngenta was thinking of $62 billion, 650 Swiss francs per share, to let Monsanto buy Syngenta and thus become the world's largest producer of crop protection products and seeds. In addition, Switzerland would open the European market for the US based Monsanto.
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