Agrichemicals company Syngenta AG has rejected a $42 billion takeover offer from state-owned China National Chemical Corp. The company says it rejected the bid over regulatory concerns.
Syngenta is under pressure to boost shareholder returns after turning down a $47 billion takeover offer from Monsanto Co. earlier in the year.
The Swiss-based company is still in talks with ChemChina and other potential suitors. Analysts believe a deal could be reached with one of its suitors in the next few weeks.
A ChemChina spokeswoman told Bloomberg the company had nothing to announce. Syngenta also declined to comment on any further discussions the company are engaged in at this time.
The company’s Swiss-listed shares opened 11.3% higher and were trading up 10% at 380.50 Swiss francs ($379.51) in early trade on Friday.
ChemChina’s first offer valued the agricultural chemicals group at 449 Swiss francs per share, or $41.7 billion Swiss francs ($41.72 billion).
ChemChina is eyeing international expansion and Syngenta would have gone a long way in achieving that goal.
“Syngenta has sales channels in over 120 countries and it is a world leader in research, and pesticide sales volume. Only state-owned firm is able to make such offer,”said Duan Yousheng, an analyst with China Pesticides Industry Association.
Syngenta rejected Monsanto’s cash plus stock offer in August, saying it “significantly undervalued the company.”
Syngenta is planning to buy back more than $2 billion in shares this December.