Germany's Bayer makes $62 billion offer for Monsanto

[webfact]

Germany's Bayer makes $62 billion offer for Monsanto

BERLIN (AP) — German drug and chemicals company Bayer AG announced Monday that it has made a $62 billion offer to buy U.S.-based crops and seeds specialist Monsanto.

The proposed combination would create a giant seed and farm chemical company with a strong presence in the U.S., Europe and Asia.

Bayer said the all-cash offer values shares of Monsanto at $122 each. That compares with their closing price Friday of $101.52 and is 37 percent higher than their closing price of $89.03 on May 9, the day before Bayer made a written proposal to Monsanto.

Bayer had said on Thursday that its executives met recently with their Monsanto counterparts "to privately discuss a negotiated acquisition" of the specialist in genetically modified crop seeds, which is headquartered in St. Louis, Missouri. Monsanto said then that it was reviewing Bayer's proposal.

Bayer said it plans to finance the acquisition with a combination of debt and equity. It said that "is prepared to proceed immediately to due diligence and negotiations and to quickly agree to a transaction."

The acquisition "would be a compelling opportunity to create a global agriculture leader, while reinforcing Bayer as a life science company with a deepened position in a long-term growth industry," the German company said in a statement.

-- (c) Associated Press 2016-05-23

[wombat]

i guess they can afford it

[wabothai]

I hope the German government takes it's responsibility and not only looks at the $$.

[helpisgood]

Here are links to a couple of articles that go into a little more depth and does address the matter of antitrust (seems like an obvious issue to me):

http://www.newsweek.com/bayer-bid-monsanto-antitrust-hurdles-461481

http://www.bloomberg.com/news/articles/2016-05-12/bayer-monsanto-deal-may-be-exception-in-age-of-antitrust-actions

[dick dasterdly]

There's nothing to say really.

Its one of those times when the EU is likely to say 'no'. Unlike the Brit. govt. that is happy to support any big company, as long as if it gives the individual politicians a well-paid Board position for their support in getting the Brit. govt./EU to accept the move .

Edited May 23, 2016 by dick dasterdly