Dive Brief:
- Monsanto, the biggest seedproducer, has gone to Syngenta, the world's largest crop chemicals producer, (again) regarding a takeover, close to a year after another takeover plan was unsuccessful, according to sources reported by Bloomberg.
- Syngenta is reportedly worried about antitrust issues, and the two companies may not necessarily come to an agreement.
- A Monsanto-Syngenta behemoth would make the company the biggest company globally for seeds and crop chemicals, placing itself as huge competition to Bayer, BASF, and Dow Chemical Co. A Monsanto spokeswoman declined comment to Bloomberg, and Syngenta also did not have a comment.
Dive Insight:
Previously, the concern about the deal was "the strategic fit, antitrust issues and relocating the company." Syngenta's management went against discussion talks, according to sources then.
The deal would have given Monsanto an opportunity to change its tax location to Switzerland, the average corporate tax rate there is 17.9% vs. 35% in the U.S. These inversion deals have been "under increased scrutiny from U.S. legislators," reports Bloomberg. Also, a new offer may not make a change to Monsanto's address.
Both companies have been raising money in the agricultural startup sphere. Monsanto, often the subject of much debate regarding GMOs, recently reported sales that missed expectations. Syngenta too recently posted sales below estimates.