…the St. Louis-based agricultural company could save $500 million according to Olin associate professor of finance Radhakrishnan Gopalan. Gopalan tells the St. Louis Business Journal, that “Monsanto could reduce its effective tax rate to 20 percent, down from its current rate of about 28 percent, by incorporating in the U.K. But Gopalan points out that so-called “tax inversion” lowers stock liquidity and the market value of a company’s shares, as investors prefer U.S. laws to foreign laws. Gopalan said Monsanto’s smaller investors ‘may not prefer the lower liquidity and lower valuation.'”
Monsanto has made a non-binding $45 billion offer for Swiss rival Syngenta and suggested it would move it headquarters to the UK if the buyout takes place.
Link to article:
Monsanto could save $500 million incorporating in Switzerland
Related blog post and video: Downside of Corporate Inversions
