Monsanto drops bid for Syngenta
August 27, 2015 |03:11 PM
Mosanto on Wednesday dropped its bid to buy agribusiness rival Syngenta, Reuters reported.
Syngenta shares fell more than 18 percent after the announcement while Monsanto shares jumped more than 7 percent, Reuters said.
National Farmers Union President Roger Johnson said he was pleased that Monsanto dropped the bid.
“American agriculture is already far too concentrated, leaving family farmers and ranchers at a great disadvantage in the market place,” Johnson said in a news release. “This is clearly not only good news for family farmers, but for economically competitive markets as well.”
The NFU board of directors had passed a resolution earlier this year opposing the potential merger between the two agriculture giants, which would create an enormous company that would combine the nation’s top seed company with the nation’s largest pesticide company.
“American agriculture is already far too concentrated, leaving family farmers and ranchers at a great disadvantage in the market place,” said Johnson. “This is clearly not only good news for family farmers, but for economically competitive markets as well.”
In a news release, Monsanto said that while the company “continues to believe a combination with Syngenta would have created tremendous value for shareowners of both companies and farmers, Syngenta has communicated that Monsanto’s enhanced proposal did not meet Syngenta’s financial expectations.”
“Without a basis for constructive engagement from Syngenta, Monsanto will continue to focus on its growth opportunities built on its existing core business to deliver the next wave of transformational solutions for agriculture.”
Syngenta shares fell more than 18 percent after the announcement while Monsanto shares jumped more than 7 percent, Reuters said.
National Farmers Union President Roger Johnson said he was pleased that Monsanto dropped the bid.
“American agriculture is already far too concentrated, leaving family farmers and ranchers at a great disadvantage in the market place,” Johnson said in a news release. “This is clearly not only good news for family farmers, but for economically competitive markets as well.”
The NFU board of directors had passed a resolution earlier this year opposing the potential merger between the two agriculture giants, which would create an enormous company that would combine the nation’s top seed company with the nation’s largest pesticide company.
“American agriculture is already far too concentrated, leaving family farmers and ranchers at a great disadvantage in the market place,” said Johnson. “This is clearly not only good news for family farmers, but for economically competitive markets as well.”
In a news release, Monsanto said that while the company “continues to believe a combination with Syngenta would have created tremendous value for shareowners of both companies and farmers, Syngenta has communicated that Monsanto’s enhanced proposal did not meet Syngenta’s financial expectations.”
“Without a basis for constructive engagement from Syngenta, Monsanto will continue to focus on its growth opportunities built on its existing core business to deliver the next wave of transformational solutions for agriculture.”
