LUDWIGSHAFEN, GERMANY - BASF SE has joined Monsanto in the ring of bidding wars for Agribusiness and seed Company Syngenta AG.
As we’ve previously reported, Syngenta has already rejected a $45 billion dollar offer from Monsanto, claiming that the bid “fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks.” Bloomberg Business reports, however, that the two companies are continuing talks to work on resolving antitrust concerns.
According to Reuters, BASF is now also speaking to investment bankers about the possibility of an offer for Syngenta. As of yet, BASF has made no decision and no bid may materialize, confidential Reuters sources said.
BASF has been developing improved plant characteristics, including drought tolerability, but the company still relies on its partners like Monsanto to bring finished seed products to market. According to Reuters, BASF’s €5.4 billion crop chemicals division commands about 11 percent of the global crop chemicals market, third behind Syngenta and Bayer. This potential bid, along with Monsanto’s, is expected to cause a number of antitrust related issues.
BASF could also be potential buyer of only Syngenta's seed business, analysts suggest. If Monsanto agreed to a deal with Syngenta, they may then sell its seed business to a company like BASF to allay antitrust concerns, sources tell Reuters.
DuPont Co. and Dow Chemical Co. have been mentioned as other possible bidders for Syngenta’s seed operations, Bloomberg Business reports.
Stay tuned to AndNowUKnow for any developing news on this matter.
