Monsanto Again Approaches Syngenta On Possible Takeover : Report

(RTTNews) - Monsanto Co.(MON) has approached Syngenta AG (SYT) about a takeover, almost a year after a previous attempt fell apart, Bloomberg reported citing people familiar with the matter.

The report said Monsanto has discussed its interest with Syngenta in recent weeks. Syngenta, which has a market value of about 29 billion Swiss Francs ($31 billion), has concerns about a combination, which would face antitrust hurdles, and the companies may fail to reach an agreement.

Combined with Syngenta, Monsanto would become the largest player in the world for both seeds and crop chemicals and a formidable competitor to Bayer AG, BASF SE and Dow Chemical Co. Basel-based Syngenta is the world's largest maker of crop chemicals whereas St. Louis-based Monsanto is the largest maker of seeds and dominates the global market for genetically modified crops like corn and soybeans.

The companies reportedly held preliminary talks last year with advisers about a combination, before Syngenta's management decided against negotiations. No agreement was made after concerns were raised about the strategic fit, antitrust issues and relocating the company.

To address antitrust issues, Monsanto has planned for a deal that would include a sale of portions of the combined business. The U.S. company last year reached out to potential bidders of those assets, including Bayer.

MON closed Thursday's trading at $113.96, down $1.04 or 0.90%. However, the stock gained $4.09 or 3.59% in after-hours trade.

SYT closed Thursday's regular trading at $67.04. In after-hours, the share gained $9.21 or 13.74%.