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Monsanto confirmed it made a private proposal to Syngenta to acquire its rival for $45 billion, which the Switzerland-based company rejected.
A Syngenta press release said its board of directors came to a unanimous decision to reject the proposal, explaining that it “fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.”
According to Reuters, Monsanto now plans to divest Syngenta’s seed and genetic traits businesses, as well as some overlapping chemistry assets, to win regulatory approval for takeover of the company.
Monsanto president Brett Begemann said Monsanto is confident it can address all regulatory concerns about the potential merger, but Syngenta disagrees that a sell-off of its seed business would appease regulators, Reuters says.