Bayer completes Monsanto acquisition

Bayer plans to complete the acquisition of Monsanto on June, 7, following the receipt of all required approvals from regulatory authorities.

 

 "The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition,” said Werner Baumann, chair of the board of management of Bayer AG. “We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector."
 

Bayer announced its intention to acquire Monsanto in May 2016 and signed an agreement with the U.S. company for $128 U.S. per share in September 2016. Currently that corresponds to a total cost of approximately $63 billion U.S. taking into account Monsanto's debt outstanding as of February 28, 2018. In connection with the comprehensive regulatory approval process, Bayer has agreed to the divestiture of businesses which generated 2.2 billion euros in sales in 2017 for an aggregate base purchase price of 7.6 billion euros.

 

In 2017, both companies together employed approximately 115,000 people, accounting for the divestments.
 

The acquisition is anticipated to generate significant value. Bayer expects a positive contribution to core earnings per share starting in 2019. From 2021 onward, that contribution is expected to be a double-digit percentage. Moreover, adjusted for divestments, Bayer expects synergies to deliver annual contributions of $1.2 billion U.S. to EBITDA before special items as of 2022.
 

Bayer will become the sole shareholder of Monsanto on June 7. According to the conditional approval from the United States Department of Justice, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been completed. This is expected to be in approximately two months.

Bayer will remain the company name. Monsanto will no longer be a company name. The acquired products will retain their brand names and become part of the Bayer portfolio.

 

Source: Bayer June 4, 2018 news release

If latest news: 
Check if it is latest news (for "Latest News" page)
Publish date: 
Tuesday, June 5, 2018
Home page latest news order: 
3

Click to leave a comment

CAPTCHA
For security purposes, please confirm you are not a robot!

RELATED NEWS

No carcinogen warning required on glyphosate label

The U.S. Environmental Protection Agency is overriding California’s Proposition 65 law that requires warning labels on glyphosate that it is carcinogenic, citing the action as “irresponsible.” Glyphosate is the most commonly used weedkiller in the world.

AXXE broad-spectrum herbicide approved

BioSafe Systems has received approval for foliar spray treatment of a broad range of weeds and grasses in a wide range of crops.

Bayer moves Crop Science HQ to St. Louis

Crop protection giant, Bayer, which bought Monsanto in a mega deal, is moving its crop science headquarters to St. Louis and closing its Research Triangle Park facilities. 

Corteva defends Lorsban insecticide

Here’s what the Pest Management Regulatory Agency says about key crop protection products:  Lorsban, Senator and Aliette.

Biological insecticides for greenhouse strawberries

Bioprotec and Dipel biological insecticide labels have been expanded for control of leafrollers on greenhouse strawberries in Canada.