Monsanto is prepared to pay a $2 billion break-up fee should its $45 billion takeover bid for Syngenta AG fail as it presses to jumpstart talks on combining its leading franchise for genetically modified seeds with the world’s largest maker of agricultural chemicals.
The break-up fee would be payable if Monsanto is unable to obtain global regulatory approvals, the company said in a statement. Monsanto reiterated that it would sell all overlapping businesses and that it’s “confident” it can obtain needed clearances.
Syngenta on 8 May rejected an unsolicited offer of 449 francs a share, with 45 per cent in cash, saying it undervalued the company and that a merger would have antitrust risks. The bid represented a 43 per cent premium to Syngenta’s share price at the close on 30 April , just before Bloomberg News reported the proposal.
“It is disappointing that Syngenta has not engaged in substantive discussions about the many benefits of this combination, including the benefits for farmers around the world,” Monsanto chairman and chief executive officer Hugh Grant said in a statement. Monsanto is committed to “pursuing constructive conversation with Syngenta’s management and board,” he said.
Bloomberg News, edited by ESM
