Syngenta Reportedly Rejects ChemChina's $42 Bln Buyout Offer; Stock Surges

(RTTNews) - Syngenta AG (SYN) rejected ChemChina's offer to buy the Swiss crop chemicals firm in a deal valued at about $42 billion, citing regulatory risk, Bloomberg reported.

SYT closed Thursday trading at $69.15, down $0.46 or 0.66%. However, in after- hours, the stock gained $8.85 or 12.80%.

China National Chemical Corp, known as ChemChina, made an offer of about 449 Swiss francs per share, which would value Syngenta at about 41.7 billion francs or $42 billion, the report said quoting people familiar with the matter.

While a deal isn't imminent, the two companies are still talking and an agreement could be reached in the next few weeks. Syngenta is also talking to other potential suitors as it explores options. Talks may fall apart and Syngenta may decide to stay independent or seek acquisitions of its own, the report noted.

In August, Agricultural products company Monsanto Co (MON) had said it abandoned efforts to buy Syngenta AG, citing recalcitrance on the part of the Swiss pesticide producer to its sweetened offer. Monsanto then raised its offer for Syngenta to 470 francs per share, or about $47 billion, from a prior offer in April of about $45 billion, but in vain.