Will Monsanto Buy Syngenta?

The price of shares in Syngenta spiked 12% in the past week on the back of media reports that the Swiss agricultural chemicals giant could be a $40 billion takeover target for Monsanto. Both firms declined to comment on a possible deal. Analysts at equity research firm Jefferies suggested in a research note that Monsanto’s acquisition of Syngenta would provide the St. Louis firm with diversification away from its glyphosate herbicide and create a market leader in seeds, crop protection chemicals, agchem distribution, and biological products. However, partnerships or asset swaps between the two firms would be more likely than an acquisition, Jefferies states.