Dive Brief:
- When Syngenta AG reported its most recent earnings, it opened itself back up to the debate with Monsanto Co. over Monsanto's proposed takeover bid.
- After Syngenta reported a 10% decline in first half sales, Monsanto used the opportunity to confirm the viability of its bid for Syngenta's future. Monsanto CEO Hugh Grant said in a statement, "Syngenta's earnings announcement confirms it still does not have a long-term vision or plan that would create the same value as Monsanto's very attractive 449 Swiss franc [per share] proposal. Monsanto remains ready to discuss with Syngenta a combination that would provide highly attractive returns to shareholders and would represent a transformational opportunity for global agriculture to meet the needs of farmers and broader society. The ball remains in their court."
- Syngenta, however, said the company remains competitive and maintains a strong negotiating position while it is Monsanto that actually has a need to fill. "Syngenta is not the one with the problem, Monsanto is the one with the problem that it is trying to solve on the back of our crop protection products," Syngenta CEO Michael Mack told Reuters in a telephone interview.
Dive Insight:
Syngenta has already rejected Monsanto's takeover bids not once but twice, even when Monsanto has attempted to assuage some of Syngenta's concerns. This includes regulatory hurdles, which Monsanto addressed by seeking a buyer for Syngenta's seeds business, Reuters reported, which Monsanto said it would divest in the deal. Even then, Monsanto hadn't given up yet, and the comments Grant made following the earnings announcement confirms the company's renewed efforts.