Syngenta has confirmed that it received an unsolicited proposal from US agribusiness Monsanto to acquire the Switzerland-based crop chemicals maker for about $45bn (£29.5bn, €39.8bn).
However, the company's board unanimously decided to reject the offer, which "fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks".
"Syngenta's Board of Directors, in conjunction with its legal and financial advisers, has undertaken a thorough review of all aspects of Monsanto's offer and has unanimously determined to reject Monsanto's proposal as it is not in the best interests of Syngenta, its shareholders and its stakeholders," the company said in a statement.
Bloomberg earlier reported that Monsanto, known for its patented genetically-modified seed products and pesticides, submitted a $45bn bid for Syngenta, valuing the company at CHF 450 (£315, $487) per share – about 35% premium over the company's last closing price.
The news agency added that Syngenta rejected the offer, though left it open for Monsanto to make another offer or start talks.
"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," Michel Demaré, Syngenta chairman said.
"While Syngenta's valuation is currently affected by short term currency and commodity price movements, the business outlook is strong, with emerging markets accounting for over 50% of our sales."
Demaré noted that his company registered double digit growth rates for the fifth consecutive year in emerging markets, which represent a major part of the future growth potential for its industry. He added that the company's new products are achieving rapid sales growth globally and its crop protection products in development have total peak sales potential of over $3bn.
Syngenta currently has presence in over 90 countries and employs more than 29,000 people across the globe.