Syngenta in Advanced Talks with Rivals Regarding Merger, Takeover
This past year has been significantly disruptive for the agricultural seed and chemical industry, as low commodity prices and consolidation have transformed the landscape.
Earlier this year Syngenta refused a takeover offer of 470 Swiss francs per share forwarded by Monsanto, however shareholder expectations for the coming year and the recently announced $130 billion merging of Dow Chemical Co. and DuPont have left the group unable to wait for an upswing in the cycle.
Reuters reports that Syngenta chairman Michel Demare told the Swiss newspaper, Finanz und Wirtschaft that Syngenta is in advanced, formal talks regarding either a merger or a takeover for the group with rivals Monsanto, ChemChina, among others.
Mr. Demare declined to reveal whether a merger or a takeover was more likely, or whether a deal would be more likely to happen with Monsanto versus ChemChina, but he did state that China’s need for food security and technological upgrading gave a deal with a Chinese entity driving potential.
“China is a serious partner and has to be taken into consideration,” said Mr. Demare. “The Chinese have made big takeovers in the West, mostly successful, as the expamples of Volvo and Lenovo show. We view ChemChina with the same seriousness as Monsanto, Bayer, or BASF.”
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