Monsanto, Syngenta merger will drive M&As

New York

A COMBINATION of Monsanto Co and Syngenta AG would set the stage for even more mergers and acquisitions. Monsanto has approached Syngenta about a takeover that would create a giant in the market for seeds and crop chemicals with more than US$30 billion in revenue. Getting a deal approved by regulators will not be easy - and may not happen at all. To address antitrust issues and help its case, Monsanto has planned for a deal to include a sale of parts of the combined business, a person familiar with the matter has said.

The biggest concerns may be tied to what would be an unprecedented market share in soya beans and corn seeds for the combined company. Syngenta's operations in those areas would appeal to a range of buyers from Dow Chemical Co to BASF SE and Bayer AG, said Colin Isaac of Atlantic Equities LLP.