Monsanto still 'open' to deal with German chemical giant
AFP · 30 Jun 2016, 08:58
Published: 30 Jun 2016 08:58 GMT+02:00
Updated: 30 Jun 2016 08:58 GMT+02:00
- Monsanto takeover would be 'diabolical': environmentalists (24 May 16)
- German chemical giant in talks to buy Monsanto (19 May 16)
One month after the US seed and pesticide maker rejected a $62 billion takeover bid by Germany's Bayer AG as too low, Monsanto chief executive Hugh Grant said he had held talks with Bayer and with other unspecified companies.
"While there is no formal update on the Bayer proposal, I have been personally in discussions with Bayer's management over the last several weeks, along with others regarding alternative strategic options," Grant said in a statement announcing the company's latest quarterly earnings.
"We continue to recognize the potential value these types of combinations can create as they accelerate innovation and increase choice for farmers across a broader set of crops, geographies and production practices, while improving the sustainability of agriculture around the world," he said.
A takeover by Bayer would have been the biggest takeover by a German group of a foreign company and would create a new world leader in seeds, pesticides and genetically modified (GM) crops.
"The biggest fear is that Bayer is seeking to buy Monsanto to inundate the European market with GM crops," said Anne Isakowitsch, a Berlin-based activist for the environmentalist campaign group, Sum of Us, who has launched a petition against the tie-up.
The deals have sparked worries among farmers who fear that consolidation will lead to higher prices for seeds. Some analysts have said a Bayer-Monsanto tie-up could face tough scrutiny from antitrust regulators.
Monsanto reported on Wednesday a 37.2 percent drop in fiscal third-quarter earnings to $717 million after sales tumbled 8.5 percent to $4.2 billion. Key factors included the pricing declines in herbicide glyphosate, known by its brand name Roundup.
"Our industry is running at a low point in the overall agriculture cycle and we've experienced an unforeseen level of challenges affecting our business in fiscal year 2016," Grant said.
"Today, however, we anticipate positive resolution on the horizon for several of these challenges, coupled with early signs of recovery in agriculture."
Shares of Monsanto rose 1.5 percent to $102.65 in late-morning trade.