Transnational agrochemical and seed giant Monsanto has reiterated its desire to merge with fellow chemical-producing behemoth Syngenta, a company that has already rebuffed three previous purchase attempts by Monsanto.
Announcing unexpectedly positive third quarter earnings late last
week, Monsanto said that it is still seeking ways to woo
Switzerland-based Syngenta AG in the former’s pursuit of a
“corporate inversion,” or a move overseas
to the UK to avoid higher tax rates in the United States.
Monsanto’s unsolicited attempts to buy Syngenta at a price of $45
billion included a proposed $2 billion termination fee to be paid
in the event an anti-trust regulator blocks the merger.
“Our proposal to combine with Syngenta is an exciting logical
next step for our business, offering the opportunity to
accelerate innovation and support a more diverse group of farmers
around the world,” Monsanto CEO Hugh Grant said in a
statement, according to the Associated Press.
Under the plan, Monsanto investors would end up with a 70 percent
holding in the UK company while investors in Syngenta would take
the rest.