Syngenta, the world's largest agrochemicals company, fended off a USD47 billion offer from U.S. group Monsanto in August and reportedly rejected a USD42 billion pursuit by state-owned China National Chemical Corp or ChemChina last month. But any merger between Dow Chemical and DuPont, which would create one of the world's largest chemical companies with more than 92 billion in annual sales, could embolden Syngenta's spurned suitors to have another go, Bernstein analysts said.

Syngenta's U.S.-listed shares rose more than 7 percent and closed up 1.69 percent at 366.10 Swiss Francs on Wednesday in Switzerland. We think this makes it more likely that Monsanto
re-approaches Syngenta with a bid of up to 485 (Swiss Francs pershare), the analysts said. Monsanto had offered 470 Swiss Francs in a cash and stock.

A merger of Dow and DuPont would put further pressure on rivals such as Germany's BASF SE and Bayer AG to consolidate as falling crop prices curb sales. Talks between Dow and DuPont are at a late stage and it appeared unlikely a competitor would swoop in with a counter
bid. Wall Street welcomed the reported merger talks, lifting shares of both companies by 12 percent.

ChemChina has a 5 percent share of global crop chemicals through its ownership of Israeli generic pesticides maker Adama. The Chinese firm would like to expand internationally but is unlikely to pursue a hostile bid and would prefer a smaller, more manageable transaction, bankers in Asia said.

Regulators could still require both companies to sell off some businesses to curb their influence in particular markets, meaning that Syngenta, Monsanto and other players could wait in the wings for pieces of the Dow DuPont agribusiness to be sold.

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