Monsanto Targets Farmers, AFBF In Syngenta Takeover
July 21, 2015 As Monsanto Co. struggles to convince rival Syngenta AG to discuss a potential merger, the seed and agrochemical giant is also wooing U.S. farmers, aiming to ease concerns about the proposed tie-up that could prompt regulatory challenges, reports Carey Gillam via Reuters UK.
Company executives have been criss-crossing the U.S. heartland, meeting with soybean and corn growers and a range of powerful farm lobby organizations to seek their support, company and farm officials say. And the company has launched a website promoting the benefits of the proposed $45 billion acquisition of Syngenta, which the Swiss company has thus far rebuffed.
Monsanto leaders have also been making appearances on national and regional broadcasts to make their case that combining two of the world’s largest agricultural companies will help – not hurt – their customers.
The efforts follow weeks of Monsanto executive meetings with Syngenta shareholders.
It’s an all-out approach that analysts and marketing experts say is unusual in a corporate acquisition effort, and one that requires Monsanto to walk a fine line.
“If they soothe the worries of the marketplace that helps a lot,” said William Carner, a Westminster College business professor and marketing expert.
“They’ve got to show Syngenta how profitable this will be. At the same time they have to tell the markets they aren’t going to gouge them. It’s a nice little tightrope they’ve got themselves on,” Carner said.
Among those Monsanto has been lobbying is the American Farm Bureau Federation, which calls itself the “voice of agriculture.”
The group has no formal position on the proposal. But Dale Moore, who oversees its public policy arm, said there are questions about how prices and product innovation could be impacted.
Read the full article from Gillam on UK.Reuters.com here.
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