Monsanto Drops $46 Billion Syngenta Bid to Focus on Core Business
Global seed giant, Monsanto has dropped its $46 billion bid it announced earlier this year to take over its rival, Syngenta in order to focus on its core business.
The announcement has quieted widespread resistance throughout multiple industries to the deal that would have created a single global leader in both seeds and crop treatments and would have significantly changed worldwide agriculture.
St. Louis-based Monsanto maintained its stance in recent months that the deal would not create a monopoly, and in fact, would create a company that would be better equipped to accelerate the commercialization of innovative products.
On August 18, Monsanto increased its bid from the original 449 francs per share to 470 francs per share bringing the cash value of the deal to $46 million. The negotiations also increased the reverse breakup fee which would have been payable by Monsanto if regulatory approvals for the deal were not able to be secured to $3 billion.
Syngenta however has consistently remained distant regarding the offer, stating that it was ‘inadequate’ and that it was subject to too many possible objections from anti-trust bodies to be a viable option.
Monsanto will resume the implementation of its share repurchase program as soon as is feasible, and company leadership has restated its confidence that the company can meet its five-year plan of doubling its earnings by 2019 through an integrated strategy involving its leadership in breeding, biotechnology, data science, and biologicals.
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