Syngenta To Divest Vegetables Seeds Business,buy Back More Than $2 Bln Of Shares

(RTTNews) - Swiss crop chemicals major Syngenta AG (SYT) said Thursday that it plans to divest its global vegetables seeds business. The high margin business has a significant global footprint and a wide array of best-in-class varieties. As such, it is expected to attract significant third-party interest.

Syngenta also noted that it plans to buy back more than $2 billion of shares.

"The initial program of more than $2 billion will commence in the coming weeks. This will be in addition to the progressive dividend policy which the company has followed for several years," the company said.

Mike Mack, Chief Executive Officer, said, "We continue to make excellent progress with our AOL program which, together with our clear intent to drive margin improvement across the business, underpins our confidence in our 2018 margin target of 24-26%. For 2015 we reiterate the full year guidance that we outlined in July."

In Late-August, Agricultural products company Monsanto Co (MON) had said it abandoned efforts to buy Syngenta, citing recalcitrance on the part of the Swiss pesticide producer to its sweetened offer. Monsanto had 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.