Bayer to acquire Monsanto with $66 billion offer

Bayer to acquire Monsanto with $66 billion offer

The $128-a-share deal is the largest of 2016 so far.

September 14, 2016

Bayer and Monsanto today announced that they have signed a definitive merger agreement, with Bayer to acquire Monsanto for about $66 billion, or 128 per share in an all-cash transaction, after several months of negotiations and offers.

During a press conference about the deal, representatives from both companies said the merger would create access to better solutions for growers so that they can help contribute to closing the gap between supply and demand with the increasingly growing population in the world.

They also said the merger would help improve innovation and technology, including in the areas of crop protection and digital farming.

Bayer intends to finance the transaction with a combination of debt and equity, $57 billion and $19 billion respectively.

According to an article about the deal on Reuters, "the deal will create a company commanding more than a quarter of the combined world market for seeds and pesticides in the fast-consolidating farm supplies industry."

Monsanto’s Board of Directors, Bayer’s Board of Management and Bayer’s Supervisory Board have unanimously approved the agreement. Based on Monsanto’s closing share price on May 9, 2016, the day before Bayer’s first written proposal to Monsanto, the offer represents a premium of 44 percent to that price.

Read more about the deal on Bayer's website.

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