Syngenta (SYT) Stock Slides on Potential Agricultural Industry Consolidation
NEW YORK (TheStreet) -- Syngenta (SYT) stock is falling 3.55% to $76.25 on heavy trading volume on Wednesday as the company takes an active role in consolidation talks in the agricultural sector, chairman Michel Demare told the Financial Times.
The Swiss agricultural company is involved in "extremely active" discussions with competitors seeking mergers and acquisitions, Demare noted.
"We are all convinced that [the sector] will look quite different in six months," he added, the Times reported.
The comments follow similar sentiments from executives at Monsanto (MON) which offered to acquire Syngenta for $46 billion in August.
Last week, Syngenta received a $42 billion offer from China National Chemical Corp., a state-owned Chinese chemicals company.
Syngenta refused both proposals because they said they undervalued the company.
The agricultural industry is already led by large corporations that could face antitrust scrutiny in various markets.
"It is clear that every potential combination has an antitrust risk," Demare said, according to the Times.
So far today, 1.55 million shares of Syngenta have exchanged hands, compared with its average daily volume of 573,175 shares.
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