Syngenta Rejects Monsanto’s Buyout Bid

The board of Syngenta has acknowledged an unsolicited bid by Monsanto to acquire the company after recent media speculation. The bid was valued at about $45 billion. Syngenta’s board unanimously voted to reject the offer, noting it fundamentally undervalued Syngenta’s standing and future growth prospects.

Syngenta board chairman Michel Demare said in a statement regarding the offer:  “While Syngenta’s valuation is currently affected by short term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50% of our sales. Our integrated strategy has been particularly successful in these markets, which in 2014 registered double digit growth rates for the fifth consecutive year, and which represent a major part of the future growth potential for our industry. Recently launched new products are achieving rapid sales growth globally as growers demand the latest technologies, and we have a strong pipeline of innovative crop protection products in development, which have total peak sales potential of over $3 billion.

“In 2015, we are on track to achieve the first $265 million of savings from our Accelerating Operational Leverage Program, and we are targeting savings of $1 billion in 2018. This will allow us to realize the full benefits of the integrated strategy and will ensure that increases in profitability are sustained for the benefit of Syngenta’s shareholders.”