Dive Brief:
- An anonymous survey of nearly 100 current and former Syngenta AG investors found that about 92% of them support negotiation talks between Syngenta and Monsanto Co., which has twice bid for a takeover of Syngenta and twice been denied. The value of that takeover, however, was debated among investors.
- "Investors in the survey, on average, said an acceptable offer would be 473 Swiss francs ($488.5) a share, about 5 percent more than Monsanto’s 449-franc proposal," Bloomberg reported.
- Syngenta investors are reportedly unconvinced by management's ability to execute its strategy and by the current earnings goals for 2018.
Dive Insight:
While a Syngenta and Monsanto deal could be rekindled, BASF confirmed a loan package it has committed to a takeover bid of Syngenta, according to Reuters.
"BASF will only decide to submit a bid for Syngenta if Monsanto makes an offer for the Swiss group, the sources said, adding that BASF was comfortable with there being no merger at all and the status quo in the industry prevailing," Reuters reported. One of Reuters' sources added, "BASF will not be a first mover but remain a reactive player."
Should Monsanto present Syngenta with a more attractive bid, there will still be the antitrust concerns, though Monsanto has made concessions in that area. Monsanto committed to divesting Syngenta's seeds business and offered Syngenta a $2 billion reverse-breakup fee if regulators block the merger on antitrust grounds.