The rejection comes as no surprise. The offer -- which would be the biggest takeover ever attempted by a German company -- comes amid rapid consolidation in the agricultural chemicals industry. And generous as it seems, it falls flat compared to other landmark deals. Last December, Dow Chemical and DuPont agreed to a 130 billion merger, after which the companies are expected to split into three separate businesses, including one focused on seeds and crop sprays, according to the Financial Times. Then, in February, Swiss competitor Syngenta agreed to a 43 billion takeover by the China National Chemical Corp., or ChemChina.
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.
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.
You don't see self-driving cars taking over American cities yet, but robotic tractors already roar through our corn and soybean farms, helping to plant and spray crops. They also gather huge troves of data, measuring moisture levels in the soil and tracking unruly weeds. Combine that with customized weather forecasts and satellite imagery, and farmers can now make complex decisions like when to harvest--without ever stepping outside. These tools are part of a new trend, known as "precision agriculture," that is transforming how we grow crops. Using everything from sensors on combines to drones equipped with infrared cameras that monitor plant health, service providers--ranging from Monsanto and DuPont to startups--take data from the fields, upload it to the cloud, crunch it, and provide farmers with advice on how to run their operations.
Amid the furor surrounding allegations of covert ties with Russian intelligence figures as well as his first press conference since winning the election, President-elect Donald Trump found time in his hectic Wednesday schedule to meet with two towering figures in the agriculture world, reports Fox Business Daily. Rather, the meeting involved German chemical giant Bayer's $66 billion buyout of US seed/agrichemical giant Monsanto--a deal that will have to pass antitrust muster with Trump's Department of Justice (more on that here). Fox reports that Bayer CEO Werner Baumann and his Monsanto counterpart Hugh Grant met with the incoming president at Trump Tower in midtown Manhattan to promote the merger. In an email to the news organization, a Monsanto spokesperson confirmed that the two execs "had a productive meeting with President-Elect Trump and his team to share their views on the future of the agriculture industry and its need for innovation." Baumann and Grant have plenty to be concerned about regarding possible antitrust obstacles to their mega-deal.