Bayer Makes Bid For Monsanto
May 19, 2016
UPDATED 5/23/16: Bayer AG confirms it has made an unsolicited non-binding proposal for Monsanto Company. Bayer says executives from the company met with executives from Monsanto to discuss a negotiated acquisition. In a letter from Werner Baumann, CEO of Bayer AG and Liam Condon, president of Bayer AG’s crop science division to Monsanto CEO Hugh Grant the deal would “combine our research and development capabilities, creating an innovation powerhouse to develop solutions for farmers around the world.”
Bayer’s all-cash offer of $122 U.S. dollars per share values Monsanto at $62 billion U.S. dollars. Bayer says it expects annual earnings post-merger to be approximately $1.5 billion U.S. dollars after three years.
“We have long respected Monsanto’s business and share their vision to create an integrated business that we believe is capable of generating substantial value for both companies’ shareholders,” Werner Baumann, CEO of Bayer AG, said. “Together we would draw on the collective expertise of both companies to build a leading agriculture player with exceptional innovation capabilities to the benefit of farmers, consumers, our employees and the communities in which we operate.”
The proposal from Bayer calls for the global seeds & traits and North American commercial headquarters to remain in St. Louis, MS, and the global crop protection and divisional crop science headquarters in Monheim, Germany. The company would keep production in Durham, NC. Digital farming would be based near San Francisco, CA.
Monsanto’s board of directors is reviewing the proposal, in consultation with acting financial advisors Morgan Stanley & Co. and Ducera Partners and legal advisor Wachtell, Lipton, Rosen & Katz.
Subscribe Today For
