Germany’s BASF SE has no plans to buy global biotech seed company Monsanto Co, sources with knowledge of the situation said this week.
Rumors that a buyout was imminent sent shares of Monsanto Co up as much as 4 percent while shares of BASF, the world’s largest chemical maker, fell 2.8 percent to 62.59 euros.
A tie-up with Monsanto would give BASF a deeper footing in the United States and help it compete with agricultural rivals, including DuPont’s Pioneer unit and Dow Chemical’s DowAgroSciences unit.
Yet three sources with knowledge of the situation said BASF currently has no plans to make a bid for Monsanto.
BASF and Monsanto declined to comment.
The sources said that any bid for Monsanto would need to be high, with some speculating any offer would need to be a 100 percent premium to Monsanto’s market cap, which is roughly $37 billion.