Bayer takes over Monsanto in $ 63 b merger deal

Monday, 11 June 2018 00:00 - - {{hitsCtrl.values.hits}}

Frankfurt (Germany): German chemicals and pharmaceuticals giant Bayer said it has completed the acquisition of US-based seed and weed-killer maker Monsanto as the two firms signed off a $ 63 billion merger deal.

"Shares in the US company will no longer be traded on the New York Stock Exchange, with Bayer now the sole owner of Monsanto Company," the German firm said in a statement last week.

Monsanto shareholders are being paid $ 128 per share. JP Morgan assisted Bayer with processing the purchase price payment for the largest acquisition in the company’s history.

According to the conditional approval from the US Department of Justice, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been completed. This integration process is expected to commence in approximately two months.

Announcing the closing of the deal, Bayer Chairman Werner Baumann said: "Today is a great day: for our customers – farmers around the world whom we will be able to help secure and improve their harvests even better; for our shareholders, because this transaction has the potential to create significant value; and for consumers and broader society, because we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner."

"As a leading innovation engine in agriculture, we offer employees around the world attractive jobs and development opportunities," stated Baumann.

"Our sustainability targets are as important to us as our financial targets. We aim to live up to the heightened responsibility that a leadership position in agriculture entails and to deepen our dialogue with society," he added.

The outgoing Monsanto Chairman and CEO Hugh Grant said: “Today’s closing represents an important milestone toward the vision of creating a leading agricultural company, supporting growers in their efforts to be more productive and sustainable for the benefit of our planet and consumers.”

“I am proud of the path we have paved as Monsanto and look forward to the combined company helping move modern agriculture forward,” he added.

Liam Condon, a member of the Bayer board of management, will lead the combined Crop Science Division when the integration commences. Until that time, Monsanto will operate independently from Bayer.