Monsanto will Continue to Pursue Acquisition of Syngenta AG
Monsanto, world’s largest seed company, has registered better-than-expected earnings for the third quarter. While saying this, the company continues to have acquisition of Swiss rival Syngenta AG.
Monsanto Chief Executive Hugh Grant said they have carried out many discussions with shareholders of Syngenta and that they proved to be quite encouraging. The latter has rebuffed Monsanto’s roughly $45 billion bid.
Grant has requested investors to encourage Syngenta’s board of directors to have deal talks. He said this plan is something that they cannot afford to get delay and has also cleared that they are committed to do every possible thing to unlock the opportunity.
Repeatedly, Syngenta, based in Basel, Switzerland, has rejected Monsanto proposal. This week as well Syngenta said Monsanto’s proposal has undervalued its business and has also underestimated regulatory problems to be faced by the combination of both the companies.
On the other hand, Grant said there is always a hope when taking an offer for Syngenta directly to the firm’s shareholders. But he also said that things can take a lot of time before reaching its actual destination.
Monsanto said it has heard great interest from potential buyers of Syngenta’s seed business. Also, in latest quarter the crop-biotechnology company, based in St. Louis, said that its revenue increased 7.7% in latest quarter. The company’s herbicide division has posted a string performance.