Monsanto Company reaffirms its commitment to negotiate a mutually beneficial process as part of its proposed merger with swiss company Syngenta in a cash and stock transaction valued at 449 Swiss francs (CHF) per share.
Monsanto’s proposal would give shareholders of Syngenta a payment of 43% above the value of the share price at April 30, 2015, equivalent to 314 Swiss francs per share, listed on 30 April 2015. This means , a premium of 45% over the average value of Syngenta during the last 52 weeks.
Moreover, Monsanto Syngenta has proposed a new compensation $ 2,000 million in case of no global regulatory approvals.
“We are excited about the reaction to our proposal to our respective shareholders, customers and other interested public”, Hugh Grant, President and CEO of Monsanto said.
“It is disappointing that Syngenta was not involved in discussions about the multiple benefits of this merger, including those that generate for farmers around the world. We remain committed to promoting the opportunity of this merger and seek a constructive conversation with the Board of Directors Syngenta.
Monsanto has devoted time and resources to analyze the possible combination with Syngenta, we are confident in our ability to obtain all necessary regulatory approvals. We support this vision and we agree to divest in areas where there is overlap between the two companies. Our offer to pay US $ 2,000 million in case of not obtaining permits, demonstrates our confidence in this merger.”
Monsanto reiterates that the strengths combination of both companies will accelerate innovation and increase the options for farmers around the world, will expand its scope and scale, and provide farmers integrated across a wider range of crops geographic range, application solutions and production practices.
“The combination of global seed business and information technology Monsanto with the overall position of Syngenta products for crop protection will create significant value for producers in their efforts to meet the needs of society in general,” he added Grant.
Source: Monsanto
