Monsanto may make another run at Syngenta

Monsanto, the world's largest seed company, has approached Syngenta AG about a takeover almost a year after a previous attempt fell apart, according to people familiar with the matter.

Monsanto has discussed its interest with Syngenta in recent weeks, said two of the people, asking not to be identified discussing private information. Syngenta, which has a market value of about $31 billion, has concerns about a combination, which would face antitrust hurdles, the people said, and the companies may fail to reach an agreement.

Combined with Syngenta, Monsanto would become the largest player in the world for both seeds and crop chemicals and a formidable competitor to Bayer AG, BASF SE and Dow Chemical.

Basel-based Syngenta is the world's largest maker of crop chemicals and St. Louis-based Monsanto is the largest maker of seeds and dominates the global market for genetically modified crops like corn and soybeans.

Monsanto and Syngenta have operations in Iowa.

The companies held preliminary talks last year with advisers about a combination, before Syngenta's management decided against negotiations. Concerns were raised about the strategic fit, antitrust issues and relocating the company.

To address antitrust issues, Monsanto has planned for a deal that would include a sale of portions of the combined business, one of the people said. The company last year reached out to potential bidders for those assets, including Bayer AG.

A spokesman for Bayer couldn't be immediately reached by phone and email.

Monsanto's dominance in the seed industry was the subject of U.S. antitrust probes at the federal and state levels a few years ago.

The U.S. Department of Justice's antitrust division dropped its probe into possible anti-competitive practices in the seed industry in 2012, and a month later seven states led by Iowa ended their five-year probe without taking action.