Monsanto Says Confident Of Getting All Approvals For Proposed Syngenta Deal

(RTTNews) - In response to Swiss crop chemicals firm Syngenta AG 's(SYT) announcement this morning, Monsanto Co. (MON) confirmed that it had made a private proposal to Syngenta's Board of Directors to acquire Syngenta for 449.00 Swiss francs per share. Monsanto is confident in its ability to obtain all necessary regulatory approvals.

The proposal contemplates consideration of about 45% cash and would provide Syngenta shareholders with a very attractive premium and significant further value creation through ongoing ownership in the combined company.

Earlier today, Syngenta said its board, in conjunction with its legal and financial advisers, has undertaken a thorough review of all aspects of Monsanto's offer and has unanimously determined to reject Monsanto's proposal as it is not in the best interests of Syngenta, its shareholders and its stakeholders. The offer fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.

Meanwhile, Monsanto today noted that it has long respected and followed Syngenta's business and believes combining the two companies would deliver significant value to all stakeholders, including shareholders. Creating a new company from the combination of Syngenta's strengths and leadership in crop protection chemicals and Monsanto's leadership in seeds, traits and information technology would form an integrated global leader in agriculture with comprehensive and complementary product portfolios, and an Ag-focused organization with enhanced abilities to develop and accelerate innovative solutions for growers.

Monsanto believes the combined company would be uniquely positioned to deliver a comprehensive suite of integrated solutions to farmers around the world and to accelerate technological innovation through precision agriculture and advanced research and development capabilities aimed at increasing the world's food supply in a sustainable fashion.

Monsanto believes a combination would deliver significant value to shareholders of both companies. The combination is expected to result in substantial synergies as the company delivers more integrated solutions to customers.

Monsanto said it does not intend to make any additional comments on this matter at this time.