Monsanto says it is offering to acquire Swiss agrochemical company Syngenta, for an amount equal to $45 billion US dollars.
Syngenta’s board of directors rejected Monsanto’s offer saying it “fundamentally undervalued” the company.
Reading from a statement, spokeswoman, Kelly Fleming says Monsanto believes the combined companies would be uniquely positioned to provide farmers worldwide with a suite of integrated products.
“And to accelerate technological innovation through precision agricultural and advanced research and development capabilities aimed at increasing the world’s food supply in a sustainable fashion.”
Syngenta is one of the world’s largest pesticide makers based on sales. Monsanto is the world’s largest producer of seeds for the agricultural industry.
Combined, the two companies are worth roughly $88 billion dollars, by one published estimate.
Monsanto’s offer was comprised of about 45% cash, with the rest coming in what it called further value creation through ongoing ownership in the combined company.