Dive Brief:
- According to Bloomberg sources, Syngenta AG is bulking up defenses to combat another potential takeover bid from Monsanto Co., a bid that will likely be higher this time around. To do so, Syngenta hired UBS Group AG as an additional adviser to investors and for changes in shareholdings per the possible deal.
- Monsanto should be able to increase the bid because of the potential for selling off Syngenta's seed business, which Monsanto would likely have to do to appease antitrust regulators, several sources told Bloomberg.
- Syngenta rejected Monsanto's original 449 francs per share offer, though Monsanto could return as early as next week with a bid of 500 francs per share or more — an offer that sources believe might turn Syngenta's head, according to a Bloomberg source.
Dive Insight:
Monsanto must consider the financial pros and cons as to whether the company should raise its bid for Syngenta.
Bloomberg notes "volatile agricultural cycles that affect crop prices and demand for Syngenta’s range of cropcare chemicals," which may affect Monsanto's offer as well.