Monsanto Ends Pursuit of Syngenta After Bid Rejected. (Aug 26, 2015)

Monsanto has reported that it has ended its attempt to merge with Syngenta after its latest $46.2 Billion offer was rejected

This ends Monsanto’s four-month pursuit of Syngenta and its hopes of a deal that would have formed a global agriculture powerhouse by combining Monsanto’s lead in global seed enterprise with Syngenta’s leading crop protection business.

“Monsanto…continues to believe a combination with Syngenta would have created tremendous value for shareowners of both companies and farmers, Syngenta has communicated that Monsanto’s enhanced proposal did not meet Syngenta’s financial expectations,” the news release said.

Syngenta has rejected three cash-and-stock offers from Monsanto since it was first approached in late April, maintaining each time that the bids did not match its own valuation and that a deal carried significant regulatory risks. Syngenta’s management had also opposed Monsanto’s plan to domicile the combined entity in the U.K. to cut the combined entity’s tax rate.

Monsanto also failed to provide clarity on expected synergies, its expectations of disposal proceeds from the businesses it had offered to sell, the regulatory concessions it would be prepared to offer, and the pros and cons of the tax inversion to the U.K., the Syngenta charged.

Monsanto’s bid was complicated by a fall in its own share price, which had fallen 20% since it first made its offer. That fall prompted the bidder to increase the cash portion of its offer.

Monsanto said that it would focus on delivering on a five-year plan to more than double its 2014 earnings and that it would “resume the implementation of its approved share repurchase program as soon as practical.”