Bayer acquires Monsanto for $66bn

Bayer announced today, before Wall Street opening, that it has acquired US-based Monsanto for $66bn (debts included), creating the world’s biggest group in the pesticide and seed business. Bayer started negotiating with Monsanto in May, when it offered $122 per share. In an all-cash transaction, Bayer will pay $128 a share (6% more than the initial offer). According to the Leverkusen-based group management, the deal will deliver approximately $1.5bn in synergies. Over the past, investors and shareholders raised concerns about the potential deal due to the company’s high debt, which stood at €17.45bn last year. The takeover radically transforms Bayer - starting from now, agrochemicals will account for 50% of its revenue, while they did for 30% before the deal. Indeed, Bayer Crop Science generated $10.4bn in 2015, Monsanto $15.0bn. Bayer’s shares rose 3% soon after the announcement (Frankfurt). (Source Bayer, WSJ, Bloomberg)