St.Louis, MO—Recent business correspondence from agricultural mega-company Monsanto, based here, suggests that it may be trying to change its name as well as relocate.The news came from a series of letters between Monsanto chairman and CEO Hugh Grant and representatives of Swiss seed and crop protection company Syngenta regarding a potential company merger. Syngenta had already rejected a similar proposal back in April, describing the proposal as “inadequate,” as well as noting “the reputational risk that a combination with Monsanto would bring to Syngenta.” While this latest iteration of this proposal added a $2 billion reverse break-up fee from Monsanto should the merger fail to meet regulatory approval, Syngenta still rejected the proposal. In a letter to shareholders and stakeholders, Syngenta chairman Michel Demaré and CEO Michael Mack noted that the latest proposal “represents the same inadequate price, same inadequate regulatory undertakings to close, same regulatory risks and same issues associated with dual headquarters’ moves.”

One of the more interesting parts of the merger plan Monsanto proposed is how exactly it would play out. As is laid out in the letters, the two companies would merge under a newly-formed parent company with a new name, with the aim of “reflect[ing] its unique global nature.” This new company would also be based out of the U.K. as opposed to U.S. While the documents from Monsanto suggest that the integration of their seeds and traits business with Syngenta’s crop protection business is what’s driving this proposal, others in the industry believe other factors are at work. Gary Ruskin, co-director of the U.S. Right to Know consumer group, called this “an attempt to ditch its ugly history by ditching its name.” He cites a 2014 Harris poll gauging reputations of major corporations, where Monsanto ranked 58^th out of the 60 companies covered.
 

Posted 6/9/2015