LONDON – Syngenta said on Monday that it had rejected a second takeover approach from Monsanto.
Syngenta of Switzerland said it received another letter from Monsanto on Saturday, essentially repeating its prior offer to acquire the company for around $45 billion. Syngenta rejected a takeover bid by Monsanto in May, in part citing potential regulatory concerns.
The latest offer added a $2 billion breakup fee if the merger proved unpalatable to regulators, which Syngenta said was “wholly inadequate” and “paltry.”
“Monsanto’s second letter represents the same inadequate price, same inadequate regulatory undertakings to close, same regulatory risks and same issues associated with dual headquarters’ moves,” Syngenta said in a news release. “As such, we have reiterated our prior rejection of Monsanto’s proposal.”
In rejecting the prior offer, Syngenta said Monsanto’s bid undervalued Syngenta’s prospects and underestimated “the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.”
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