FARM chemical and pharmaceutical giant Bayer has announced a cash offer to acquire Monsanto.
The German company has made an all-cash offer to acquire all of the issued and outstanding shares of common stock of Monsanto for USD 122 per share or an aggregate value of USD 62 billion.
The offer is 37 per cent above Monsanto’s share price as of May 9.
The acquisition would see Bayer become a global agriculture leader. Its expertise would cover seed, crop protections, biologics and digital farming.
“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,” said Bayer’s chief executive Werner Baumann.
“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.”
Bayer intends to finance the transaction with a combination of debt and equity.
It expects annual earnings contributions from synergies of around $1.5 billion after three years
