BASF believed to be considering offer for rival Syngenta
News agency Reuters reported sources who wished to remain unnamed said BASF was speaking to investment bankers about the possibility of an offer for Syngenta, though it has made no decision and no bid may materialize.
In early May, the Swiss company snubbed what it called an ‘unsolicited preliminary approach' from Monsanto Company (NYSE:MON) to acquire the company, citing antitrust hurdles, although website Chem.info reported another offer could be made shortly.
A BASF bid for Syngenta would also likely face significant antitrust issues, Reuters reported.
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, the story said.
Other partners of BASF’s plant biotechnology business include Bayer AG and Cargill Inc.
BASF’s crop chemicals division with €5.4 billion (US$6.1 billion) in 2014 sales, commands about 11% of the global crop chemicals market, in third place after Syngenta and Bayer, Reuters reported.