US/Switzerland: Syngenta rejects revised Monsanto bid

Agrichemicals giant rejected a second takeover offer from US rival Monsanto, which the Swiss-based rival said “continues to gloss over” potential antitrust concerns to a deal.

Monsanto overnight restated a $45 billion, or SFr449 per share, offer for Syngenta but with a $2 billion break fee attached, which would become payable to the Swiss group if the deal were scuppered by antitrust concerns.

“After three meetings over the last month with your antitrust team, we do not believe they have raised any credible theory that could be used to impede our proposed merger on the basis of competition concerns,” Monsanto said in a letter to Syngenta.

“Nevertheless, as a sign of our high degree of confidence in obtaining the necessary regulatory approvals, we are willing to commit to a reverse break-up fee of $2 billion payable if we are unable to consummate the transaction for antitrust reasons within 18 months.”

“Such a fee would be among the highest reverse break-up fees that any company has agreed to.”

Full content: The Wall Street Journal

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