Syngenta Rejects Monsanto’s Overtures

Confirming that it has received an unsolicited proposal from Monsanto to acquire the company at a price of CHF449 per share with approximately 45% in cash, the board of directors at Swiss agrochemicals giant Syngenta said it has undertaken a thorough review of all aspects of the offer and unanimously determined to reject it, as it is not in the best interests of Syngenta, its shareholders and its stakeholders.

Syngenta said the offer "fundamentally undervalues" the company's prospects and "underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries."

Syngenta Chairman Michel Demaré said, "Syngenta is the world leader in crop protection, the number three in seeds and the first company to introduce integrated solutions for growers. Monsanto's proposal does not reflect the outstanding growth prospects of Syngenta's integrated strategy and the significant future value potential of the company's crop-focused innovation and market leading positions."

While the Swiss company's valuation is currently affected by short term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50% of the sales, Demaré added.

"Our integrated strategy has been particularly successful in these markets which in 2014 registered double digit growth rates for the fifth consecutive year, and which represent a major part of the future growth potential for our industry. Recently launched new products are achieving rapid sales growth globally as growers demand the latest technologies, and we have a strong pipeline of innovative crop protection products in development, which have total peak sales potential of over $3 billion," the board chairman stressed.

Finally, said Demaré, "In 2015, we are on track to achieve the first $265 million of savings from our Accelerating Operational Leverage Program, and we are targeting savings of $1 billion in 2018. This will allow us to realize the full benefits of the integrated strategy and will ensure that increases in profitability are sustained for the benefit of Syngenta's shareholders."