Sector News

Reuters: BASF mulls potential bid for Syngenta

June 4, 2015
Chemical Value Chain
German chemicals group BASF SE (BASFn.DE) is considering a potential offer for Syngenta AG (SYNN.VX), its Swiss rival which has received a $45 billion takeover offer from Monsanto Co (MON.N), people familiar with the matter said on Wednesday.
 
BASF is speaking to investment bankers about the possibility of an offer for Syngenta, though it has made no decision and no bid may materialize, the people said, asking not to be identified because the deliberations are confidential.
 
Syngenta has so far spurned Monsanto’s overtures citing antitrust hurdles, though lawyers representing the two companies met last week in New York to discuss whether the regulatory obstacles can be overcome, a separate source said. A BASF bid for Syngenta would also likely face significant antitrust issues.
 
BASF, Syngenta and Monsanto declined to comment.
 
BASF, the world’s largest chemicals group by sales, is also developing improved plant characteristics such as drought tolerability but relies on partners, the biggest being Monsanto, to bring finished seed products to market. Other partners of BASF’s plant biotechnology business, which does not disclose sales, include Bayer AG (BAYGn.DE) and Cargill Inc [CARG.UL].
 
BASF’s crop chemicals division with 5.4 billion Euros in 2014 sales, commands about 11 percent of the global crop chemicals market, in third place after Syngenta and Bayer. Any tie-up with the Swiss group would be expected to trigger considerable antitrust related asset sales.
 
BASF is also a potential buyer of Syngenta’s seed business should Monsanto agree to a deal with Syngenta and then sell its seed business to allay antitrust concerns, sources have previously told Reuters.
 
The German group, which has oil and gas operations and makes products including coatings, catalytic converters and super absorbers for diapers, trades at about 8.4 times core earnings compared with Syngenta’s multiple of 15.9, according to StarMine data.
 
(Reporting by Greg Roumeliotis in New York and Edward Taylor in Frankfurt; Additional reporting by Freya Berry in London, Ludwig Burger in Frankfurt, Mike Stone in New York and Oliver Hirt in Zurich; Editing by Alden Bentley and Tom Brown)

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?