Agrochemical hype fails to impress City
Friday 03 December 1999
Syngenta, which will combine both companies' crop protection assets and seeds activities, is to be headed by Michael Pragnell, the present head of AstraZeneca's agribusiness. "The industry has long lived under the shadow of chemicals, and latterly pharmaceuticals, but we will set our own standards which will become benchmarks," Mr Pragnell said.
The move, a response to troubled global agricultural markets, did not please the market, which forced AstraZeneca's shares down 118p to 2,727p. Analysts cited concerns that the deal may meet regulatory hurdles because of Syngenta's strong position in fungicides and scepticism that the merger's $525m (pounds 328m) cost savings, which include 3,000 job losses, are achievable. The total cost of the link is $950m. Novartis shares gained slightly, rising $13/8 to $431/8 in New York.
The joint group will be the world leader in crop protection and number three in seeds. Genetically modified organisms account for only 2 per cent of Syngenta's $7.9bn pro-forma sales. Mr Pragnell said the group would be technology driven.
Syngenta will be 39 per cent owned by AstraZeneca, with the rest owned by Novartis shareholders. The companies intend to float the business on the London, Zurich, New York and Stockholm exchanges.
There was speculation yesterday that AstraZeneca, which faces a patent expiry in its lead product, Losec, in 2001, will now be an easier takeover target.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Terror threat level raised to severe as PM warns Isis risk could last for decades
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...