ChemChina probably restarts negotiation after failed Syngenta takeover offer for US$42 billion

Syngenta AG rejected ChemChina's offer to buy the Swiss agricultural chemicals group in a deal valued at about US$42 billion, citing regulatory concerns, Bloomberg reported on Thursday.

China National Chemical Corp, better known as ChemChina, offered about 449 Swiss francs per share for Syngenta, valuing the Basel, Switzerland-based company at about 41.7 billion Swiss francs (US$41.72 billion), according to the report.

The offer follows a similarly priced bid from Monsanto Co that was withdrawn after Syngenta dismissed it as too low.

The two companies are still in talks and an agreement could still be reached in the next few weeks, Bloomberg said, citing sources.

Syngenta is also talking to other potential suitors, the news agency said.

U.S.-listed shares of Syngenta were up 14 percent at US$79.22 in extended trading on Thursday.

Syngenta and ChemChina could not immediately be reached for comments.

Monsanto’s Interest

Last month, Syngenta named Chief Financial Officer John Ramsay as provisional chief executive officer to replace Mike Mack, who quit suddenly. Mack faced shareholder criticism after he refused to engage in talks with Monsanto Co. over its $47 billion takeover approach.

Monsanto initially offered to buy Syngenta earlier this year for 449 francs a share, the same price offered by ChemChina. In August, Monsanto raised its cash-and-stock offer to 470 francs. Syngenta rejected the bids for being too low and failing to recognize fully its prospects and the threat of antitrust hurdles.

Monsanto, the world’s largest seed producer, withdrew its offer on Aug. 26 and has said it plans to seek acquisitions elsewhere.

The prospect of a Monsanto-Syngenta combination has triggered deal talks among the world’s top producers of pesticides and seeds, the CEOs of Dow Chemical Co. and DuPont Co. said last month.