Agro Sector Ideas

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>>> Though rebuffed earlier, Monsanto could again try to buy Syngenta


Nov 19, 2015



http://www.bizjournals.com/triad/news/2015/11/19/though-rebuffed-earlier-monsanto-could-again-try.html?ana=yahoo




"If at first you don't succeed, try, try again" — that's how the saying goes, right?

It does for crop science giant Monsanto Co. (NYSE: MON), which according to reports is again pursuing rival Syngenta AG (NYSE: SYT) after a very public, and ultimately failed, takeover attempt this summer.

Reuters reports that Monsanto continues to consider acquiring rival companies during a period in the global agrochemical sector that's been marked by consolidation, and Syngenta is a likely target.

Monsanto President Brett Begemann said at an investor meeting in the company's home city of St. Louis this week that "we've had conversations inside" about pursuing Syngenta and others.

Additionally, Monsanto CEO Hugh Grant said at the meeting that his company is "best placed to be a leading consolidator or a leading partner in an industry that is changing," according to Reuters.

Though it earlier turned up its nose at Monsanto's advances, saying that the $46 billion offer was undervalued and the deal was likely to be rejected by regulators, Syngenta appears to be more open to discussion potential mergers.

The Financial Times quotes Syngenta's chairman Michel Demaré as saying that conversations among leading players in the industry are "extremely active" and that "we are all convinced that (the sector) will look quite different in six months."

Monsanto's renewed interest in Syngenta comes as the Swiss company, which has its North American headquarters in Greensboro, has repelled another suitor, but expressed being open to talks.


Last week came news that ChemChina, also known as the China National Chemical Corp., is in talks to buy Syngenta after the Chinese company offered $42 billion for the company.

Additionally, Syngenta is reportedly discussing a potential merger with Dupont Co.'s agriculture division while DuPont is also talking to Dow Chemical Co. for a separate deal to purchase Dow's seed and pesticide unit.

In comments to The Financial Times, Demaré said this summer's back and forth between Monsanto and his company are at the root of all this activity.

"This is the result of the Monsanto approach for Syngenta, which for sure has shaken the whole industry," he said. "It has created the huge activity in which everyone is speaking to each other."

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