Syngenta: reports unsolicited proposal from Monsanto

Basel / CH. (sgt) Noting media reports, the Board of Swiss Syngenta confirms that it has received an unsolicited proposal from Monsanto to acquire the company at a price of 449.00 CHF per Syngenta share with approximately 45 percent in cash. Syngenta´s Board of Directors, in conjunction with its legal and financial advisers, has undertaken a thorough review of all aspects of Monsanto´s offer and has unanimously determined to reject Monsanto´s proposal as it is not in the best interests of Syngenta, its shareholders and its stakeholders. The offer fundamentally undervalues Syngenta´s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.

Michel Demaré, Syngenta Chairman said, «Syngenta is the world leader in Crop Protection, the number three in Seeds and the first company to introduce integrated solutions for growers. Monsanto´s proposal does not reflect the outstanding growth prospects of Syngenta´s integrated strategy and the significant future value potential of the company´s crop-focused innovation and market leading positions».

«While Syngenta´s valuation is currently affected by short term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50 percent of our sales. Our integrated strategy has been particularly successful in these markets which in 2014 registered double digit growth rates for the fifth consecutive year, and which represent a major part of the future growth potential for our industry. Recently launched new products are achieving rapid sales growth globally as growers demand the latest technologies, and we have a strong pipeline of innovative crop protection products in development, which have total peak sales potential of over three billion USD».

«In 2015, we are on track to achieve the first 265 million USD of savings from our Accelerating Operational Leverage Program, and we are targeting savings of one billion USD in 2018. This will allow us to realize the full benefits of the integrated strategy and will ensure that increases in profitability are sustained for the benefit of Syngenta´s shareholders».

Monsanto Comments on Proposal for Syngenta

St. Louis / MO. (moc) In response to Syngenta´s announcement, Monsanto Company confirmed that it had made a private proposal to Syngenta´s Board of Directors to acquire Syngenta for 449.00 CHF per share. The proposal contemplates consideration of approximately 45 percent cash and would provide Syngenta shareholders with a very attractive premium and significant further value creation through ongoing ownership in the combined company. Monsanto has long respected and followed Syngenta´s business and believes combining the two companies would deliver significant value to all stakeholders, including shareholders. Creating a new company from the combination of Syngenta´s strengths and leadership in crop protection chemicals and Monsanto´s leadership in seeds, traits and information technology would form an integrated global leader in agriculture with comprehensive and complementary product portfolios, and an Ag-focused organization with enhanced abilities to develop and accelerate innovative solutions for growers. Monsanto believes the combined company would be uniquely positioned to deliver a comprehensive suite of integrated solutions to farmers around the world and to accelerate technological innovation through precision agriculture and advanced research and development capabilities aimed at increasing the world´s food supply in a sustainable fashion. Monsanto believes a combination would deliver significant value to shareholders of both companies. The combination is expected to result in substantial synergies as the company delivers more integrated solutions to customers. Monsanto, in conjunction with its financial and legal advisors, has devoted significant time and resources to analyzing a potential combination of Syngenta and Monsanto and is confident in its ability to obtain all necessary regulatory approvals. Monsanto does not intend to make any additional comments on this matter at this time.