NEW YORK/FRANKFURT – German drugs and chemicals group Bayer AG made an unsolicited takeover offer for U.S. seeds company Monsanto Co, aiming to create the world's biggest agricultural supplier and integrate pesticides and seeds markets. Monsanto disclosed the approach on Wednesday before Bayer confirmed its move, though neither gave the proposed terms. Sources said Bayer would pay Monsanto shareholders with cash and stock, though the offer price could not be learned. Bernstein Research analyst Jeremy Redenius estimated the price at 41.9 billion ( 47 billion), plus 6.7 billion in assumed debt. He said Bayer might need a 27 billion share issue to help to fund the purchase.
German drug and crop chemical group Bayer AG on Thursday announced details of a sweetened 64 billion bid for Monsanto Co. as it tries to put the U.S. seed company under pressure to engage further. Analysts and some Monsanto shareholders were quick to opine that Bayer's latest offer, the largest all-cash takeover bid on record, was unlikely to entice Monsanto. Bayer, however, is hoping that the sweetened offer will spur enough Monsanto shareholders to call on the company's management to be more accommodative. Global agrochemicals companies are racing to consolidate, partly in response to a drop in commodity prices that has hit farm incomes. Bayer made its bid for Monsanto public in May, but the two companies have made little progress since in negotiating a deal.
Drug and chemicals giant Bayer AG made an unsolicited takeover offer for agrichemicals behemoth Monsanto Co., both companies said in separate statements, confirming ongoing speculation. Details of the negotiations and the proposed deal were not made public, but a merged entity would be the world's largest seed and agrichemicals company, with a combined market cap of about 130 billion. Monsanto issued a statement Wednesday "in response to recent media reports" to say "it has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approvals and other conditions." The St. Louis, Missouri, company said the proposal was being reviewed by its board of directors and that it will make no further comment until the review is complete. "There is no assurance that any transaction will be entered into or consummated, or on what terms," the short statement added.
German chemical giant Bayer has signed an agreement to acquire U.S. seed behemoth Monsanto (MON) in an all cash deal worth 66 billion. The deal comes after months of wrangling between the two companies. Bayer has agreed to pay 128 per share. The deal terms includes a significant breakup fee of 2 billion that Bayer would pay to Monsanto if the transaction falls through due to U.S. and/or European anti-trust concerns that analysts say will be raised as regulators take a closer look at the combined companies. The deal combines St. Louis-based Monsanto, known for its genetically modified crop seeds, and Bayer, the German manufacturer of a wide range of pesticides as well as aspirin.
German drug and chemicals-maker Bayer has made an unsolicited offer to buy agricultural giant Monsanto in a deal that could create the world's biggest supplier of seeds and pesticides. It comes amid a wave of consolidation in the industry, with rivals Dow Chemical, DuPont and Syngenta all entering mega-mergers recently. However, any tie-up is likely to be closely scrutinised by regulators over competition concerns. "There is no assurance that any transaction will be entered into or consummated, or on what terms," Monsanto said in a statement. It added there would be "no further comment" until the board of directors completed its review of the proposal.