Dive Brief:
- Monsanto Co. has proposed its second bid for Syngenta AG, which it denied once again.
- Monsanto did not raise its bidding price as was originally assumed would happen.
- Instead, Monsanto offered Syngenta $2 billion should regulators deny the acquisition, which is being referred to as a "reverse break-up fee."
Dive Insight:
Syngenta again felt that Monsanto's bid was unsatisfactory. In a letter to shareholders, Syngenta explained why the company denied the bid yet again, saying, "The only change by Monsanto is to add a wholly inadequate reverse regulatory break fee...Monsanto's second letter represents the same inadequate price, same inadequate regulatory undertakings to close, same regulatory risks and same issues associated with dual headquarters' moves. As such, we have reiterated our prior rejection of Monsanto's proposal."
Previously, Monsanto said it would divest Syngenta's seed business to earn regulatory approval for the acquisition. Now Monsanto says it will also sell off Syngenta's Touchdown herbicide brand because the glyphosate-based brand is similar to Monsanto's Roundup herbicide.
In other Monsanto news, the company will now allow certain approved shareholders to nominate candidates for its board of directors. Also, residents from seven states are suing it due to the alleged part the company's chemicals had in their blood cancer development.