Syngenta AG (SYT), the largest agrichemicals company in the world, rejected ChemChina’s $42 billion takeover bid, according to Bloomberg. Syngenta’s shares rose on the news.
Syngenta has been under pressure to increase shareholder returns after rejecting a takeover bid for Monsanto Co. (MON) this year worth $47 billion. After rejecting the offer, the company’s chief executive stepped down.
The company’s shares on the Swiss market opened 11% higher, and retreated at Fr.370.90 in morning trading, up 7.2%.
Syngenta reportedly turned ChemChina’s offer down due to regulatory concerns, and has yet to elaborate on the issue.
When asked about the report, a spokesperson for ChemChina stated that the company had nothing to announce. Syngenta failed to comment on the matter.
The acquisition of Syngenta would have helped ChemChina increase its market share and take position as the industry leader.
The initial offer from ChemChina valued Syngenta at Fr.449 per share, or a total of Fr.41.7 billion.
Monsanto had offered a similar proposal earlier in the year, but wanted to pay 55% of the price in shares. The value of Monsanto’s bid declined to just Fr.433 in August as the company’s stock price dropped because of a global commodity slump.
Syngenta announced plans to buy back more than $2 billion worth of stock to its shareholders. It funded this measure by selling off its vegetable seeds business.