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Fri, Feb. 5, 5:37 AM| Fri, Feb. 5, 5:37 AM
Wed, Feb. 3, 5:42 AM
Wed, Feb. 3, 2:07 AM
- ChemChina is offering to buy Switzerland's Syngenta (NYSE:SYT) in a deal worth more than $43B - a move that would translate into the largest ever international takeover by a Chinese company.
- Syngenta's board has recommended the 480 francs per share deal (a 20% premium based on Tuesday's closing price) to shareholders.
- If completed, the transaction would help ChemChina transform into the world's biggest supplier of pesticides and agrochemicals, while snatching an asset that was once the target of St. Louis-based Monsanto (NYSE:MON).
- SYT +3.7% premarket
- Previously: WSJ: ChemChina nears deal to buy controlling stake in Syngenta (Feb. 02 2016)
Tue, Feb. 2, 9:17 AM| Tue, Feb. 2, 9:17 AM | 5 Comments
Tue, Feb. 2, 7:46 AM
- ChemChina is nearing a deal to buy a controlling stake in Syngenta (NYSE:SYT), and a deal could be announced as soon as tomorrow, WSJ reports.
- The deal's terms are not known, but a successful transaction would represent the largest foreign acquisition by a Chinese company.
- Monsanto kicked off the current wave of deal making in the chemicals sector last year with its unsuccessful pursuit of SYT, which has since shifted its resistance to a takeover.
Tue, Jan. 26, 8:05 AM
- CTFN Contributor Valeria Camerino reports that market observers believe ChemChina's CHF470 (US$462) per share bid ($44B) for 70% of Syngenta (NYSE:SYT) is more likely to pass antitrust scrutiny than a potential merger with Monsanto (NYSE:MON) because there is less overlap. A deal could be reached as soon as next month.
- In December, Syngenta's board turned down Monsanto's $47B offer stating that it significantly undervalued the firm.
- ChemChina is a major player in generic pesticides, but has no appreciable footprint in high-tech herbicides, insecticides, fungicides or seeds. Also Chinese ownership would enhance penetration in key emerging markets. A bump in the road, however, could be the purchase of Syngenta's U.S.-based assets by a Chinese acquirer.
- Syngenta is an attractive target on the basis of its seeds business and first rate crop protection chemicals portfolio. It is the only pure play in Europe in these areas.
- As far as Monsanto is concerned, one observer believes it makes more strategic sense for Syngenta to acquire Monsanto and dispose of the crop protection chemicals business and any required seeds assets, along with the related salesforce and technical support. He feels that Monsanto would be better served by merging with BASF's (OTCQX:BASFY) crop chemical business.
- Previously: Bloomberg: ChemChina moves closer to potential Syngenta deal (Jan. 15)
- Previously: Syngenta talking with Monsanto, ChemChina and others, chairman says (Dec. 22, 2015)
Mon, Jan. 18, 4:41 AM
- A group of Syngenta (NYSE:SYT) shareholders said it opposes any sale of the company to China's state-owned ChemChina and called for the ousting of the Swiss group's leadership.
- In a letter to the Basler Zeitung newspaper, the managing director of the group that says it represents about 10% of Syngenta's capital attacked Chairman Michel Demare.
- "The board of directors is in a cul de sac from which it cannot exit on its own," Folke Rauscher wrote. "So the only alternative is a comprehensive renewal of the board of directors at the forthcoming annual meeting."
- Previously: Bloomberg: ChemChina moves closer to potential Syngenta deal (Jan. 15 2016)
Fri, Jan. 15, 2:13 PM
- Syngenta (SYT +1.7%) is one of today's few gainers amid today's stock market carnage, as Bloomberg reports the company's board has thrown its support behind a potential deal with ChemChina.
- SYT’s board met this week and voted in favor of pursuing advanced takeover talks, which could pave the way for a formal agreement to be reached by the Chinese New Year holiday in early February, according to the report.
- Speculation has mounted that SYT would seek a deal following last month’s merger agreement between Dow Chemical and DuPont, which will create the world’s largest agriculture business.
Wed, Jan. 6, 6:57 PM
- The EPA determines that bee colonies may face health risks from controversial neonicotinoid insecticides in certain situations, finding no harm to bees or their hives in some cases while posing a significant risk in others.
- The preliminary report is the first scientific risk assessment of the much-debated class of pesticides and how they affect bees on a chronic long-term basis; the result was a nuanced finding that depended mostly on the crop and neither clears the way for an outright ban nor a blanket go-ahead for continued use.
- Chemical companies have defended the products, which generate hundreds of millions of dollars in sales annually for companies including Bayer (OTCPK:BAYRY, OTCPK:BAYZF) and Syngenta (NYSE:SYT).
Wed, Jan. 6, 2:19 PM
- Monsanto (MON -1.8%) CEO Hugh Grant says a deepening decline in the agricultural industry has strengthened the rationale for combining the company, the world’s largest seller of seeds, with Syngenta (SYT -2.2%), the top seller of pesticides, but engagement about a possible merger has been “difficult."
- In today's earnings conference call, Grant did not elaborate on the difficulty in engaging SYT, but said MON still sees a "significant opportunity" through integrating SYT's pesticide portfolio and that MON's pipeline of crop genes, high-performing seeds and new computer-powered farming services make the company a prime partner for merger deals.
- SYT CFO and interim CEO John Ramsay had said in an interview last month that the company was discussing possible deals with “a number of parties” and signaled new openness to discussing a deal with MON.
- Earlier: Monsanto to cut more jobs as Q4 sales slide, 2016 EPS outlook trimmed
Dec. 22, 2015, 2:57 PM
- Syngenta (SYT +4.1%) is in talks with Monsanto (MON +2.1%), ChemChina and others but has not received a concrete takeover offer and is keeping all options open, Chairman Michel Demare says.
- SYT's board, which this year rebuffed a takeover offer from MON, is considering making an acquisition, merging with a rival or selling the company, according to Demare.
- "Given what shareholders expect for the next 12 months, going it alone is hardly possible," Demare says, explaining that SYT could move ahead on its own but shareholders currently lack the patience to wait for a cyclical upswing; sector consolidation also is adding pressure to act, he says.
- Earlier: Syngenta upgraded to Buy from Hold at Jefferies, as warm weather a boost
- Earlier: Syngenta open to deals with rivals including Monsanto, CEO says (Dec. 18)
Dec. 22, 2015, 10:11 AM
- Syngenta (SYT +1.5%) is upgraded to Buy from Hold with an $88 price target, raised from $66, at Jefferies, which cites the unusually warm winter in the U.S. as a positive for both insecticide and fungicide demand, and a wetter than usual spell in southern Brazil also should support fungicide demand.
- SYT is in "not that bad a slump," Jefferies says, as EPS arguably has troughed while matching the prior cyclical peak, which it considers a resilient performance compared with ag equipment suppliers.
- The firm also views recent buyer talk favorably and sees a greater than 75% chance of a deal happening.
Dec. 21, 2015, 5:37 PM
Dec. 18, 2015, 5:41 PM
Dec. 18, 2015, 5:41 PM
- Syngenta (NYSE:SYT) +6.8% AH after Bloomberg reports that ChemChina has improved its offer to buy the company, proposing a complex two-stage takeover that would mark the biggest-ever acquisition by a Chinese company.
- ChemChina reportedly is offering to buy 70% of SYT now, with an option to acquire the remaining 30% later, and is said to be offering ~470 Swiss francs/share for the first 70%, an improvement over its previous cash offer of 449 francs/share that was deemed too low.
- Earlier: Syngenta open to deals with rivals including Monsanto, CEO says
Dec. 18, 2015, 12:17 PM
- Interim Syngenta (SYT +2.1%) CEO John Ramsay tells Dow Jones the company is discussing possible deals with "a number of parties" and is open to combinations with companies including Monsanto (MON +0.9%).
- While Ramsay says MON has not revived its $46B takeover effort that was abandoned in August, his comment that SYT is "interested in any value-adding opportunity that exists for us in this industry, which includes Monsanto and many others" marks a notable departure from its earlier stand.
- Last week's merger between DuPont (DD -0.7%) and Dow Chemical (DOW -0.4%) removed two potential partners for SYT and eventually could pose a greater competitive threat in the ~$100B global seed and pesticide industry.
Syngenta AG is involved in the discovery, development, manufacturing and marketing of products designed to improve crop yields and food quality. The Company is also engaged in the lawn and garden business.
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