🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

UPDATE 2-Syngenta buys Monsanto sunflower assets

Published 08/06/2009, 03:25 AM
SYENF
-
MON
-

* Syngenta to pay $160 million, on cash and debt-free basis

* Acquired business had $75 million sales in 2008

* Analyst says price quite high

(Adds analyst comment, share price)

ZURICH, August 6 (Reuters) - Syngenta, the world's largest agrochemicals company, said on Thursday it would buy Monsanto's global hybrid sunflower seeds business for $160 million.

The deal will increase Syngenta's dominance in the sector, where it claims global leadership with sales of more than $200 million in 2008.

Davor Pisk, chief operating officer of Syngenta Seeds, said the deal would strengthen the company's position in Europe and South America.

"The acquisition ... is in line with its strategy to grow its seeds portfolio via strategic acquisitions," said Vontobel analyst Patrick Rafaisz.

"The price was quite high, over two times enterprise value to sales, but it is a small bolt-on acquisition and I calculate the impact on earnings per share will be less than 1 percent."

The sunflower seeds market is currently valued at around $700 million, with more than 75 percent of the value coming from developing markets, Syngenta said in a statement.

Shares in Syngenta were up 1 percent at 244 Swiss francs at 0723 GMT, outperforming a DJ European chemicals sector index. that rose 0.6 percent.

(Reporting by Martin de Sa'Pinto; editing by Simon Jessop, John Stonestreet)

(zurich.newsroom@reuters.com; +41 (0)58 306 7462; Reuters Messaging: martin.desapinto.reuters.com@reuters.net))

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.