CEO remains optimistic a deal will happen
By Diego Flammini, Farms.com
Despite two rejected bids by Syngenta, Monsanto’s CEO Hugh Grant remains confident that a deal to acquire the Swiss company is still a possibility.
In an interview with the Wall Street Journal, Grant said he would be “putting energy into putting this over the line.”
Grant said he’s had Syngenta on his radar since 2011, but not being able to secure a deal with them could be a black eye.
A merger between the two companies would create a titan in the agricultural industry with sales estimated to exceed $31 billion. The merger could also require Syngenta to sell off the seed business.
A merger that Grant estimates could take several months to finalize. Should no deal come to pass, Monsanto will look elsewhere to expand its business.
“We’ll figure out another way of doing that,” Grant told the Wall Street Journal. “This isn’t one where you fold up the tent and go back to how things were.”
Monsanto’s desire to purchase Syngenta started back in May when they tabled a $45 billion bid for the Swiss company that was met with rejection.
Another $45 billion offer in June came with a $2 billion contingency fee if regulators didn’t clear the deal. That offer too, was rejected.
“We have unanimously concluded that the proposal significantly undervalued Syngenta’s prospects but as well really underestimated the huge execution risk of this transaction,” said Chairman of Syngenta’s Board of Directors Michel Demaré in a video.
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