Swiss agribusiness Syngenta is understood to have rejected a second takeover bid by Monsanto.

Missouri-based Monsanto, the world’s largest seed company and leading producer of genetically modified (GM) crops reportedly made an initial offer for Syngenta in June 2014. Monsanto, which began life as a chemical company, was linked to the world’s largest agrochemical manufacturer again earlier this month.

However, Syngenta was said to have reservations over the offer, warning that a merger could give rise to anti-trust action; if the two companies were to join they would form the world’s largest agribusiness. This could be a problem in the United States in particular, where the two companies have cornered the markets for seed and chemical sales.  

On Friday, the Swiss chemical giant confirmed that its board had unanimously rejected a $45bn (£29 bn) bid, saying this was too low and not in the interests of the company or its shareholders.

Syngenta’s board said, “The offer fundamentally undervalues Syngenta's [growth] prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries.”  

Syngenta Chair Michel Demaré commented, “Syngenta is the world leader in Crop Protection, the number three in Seeds and the first company to introduce integrated solutions for growers. Monsanto’s proposal does not reflect the outstanding growth prospects of Syngenta’s integrated strategy and the significant future value potential of the company’s crop-focused innovation and market leading positions.”

Syngenta shares jumped by 17 percent in response to the announcement.