BASF looking for a bid to takeover Swiss company Syngenta
- Fri, 2015-06-05 (All day)
- Enkhuizen, Netherlands
BASF is reportedly contemplating a takeover offer from Swiss agrochemicals manufacturer Syngenta after the latter rejected a $45bn offer from the US-based Monsanto.
The German chemicals company is yet to make a decision on the offer, and is currently holding talks with investment bankers about the possibility of it, people familiar with the matter told Reuters.
In May, Syngenta rejected Monsanto's acquisition offer, claiming that the deal is not in its best interests, and the offer undervalues the company's prospects.
While rejecting the bid, Syngenta said Monsanto's proposal undervalues the company and the merger would create execution risks.
Monsanto proposed to acquire the company at a price of Sfr449 ($481) per Syngenta share, with around 45% in cash.
The news agency said that any possible tie-up proposed by BASF with the Syngenta bid may prompt antitrust-related asset issues.
In 2014, BASF's crop chemicals division reported €5.4bn in sales.
Sources told that the company is also a potential buyer of the Swiss company's seed business.
BASF is in the process of developing improved plant characteristics, such as drought tolerability, in partnership with companies including Bayer and Cargill to bring finished seed products to market.
In 2000, Syngenta was formed by the merger of Novartis Agribusiness and Zeneca Agrochemicals.