Mega deal: Bayer buys Monsanto

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Mergers

Mega deal: Bayer buys Monsanto

It is buying a Record. Never a German group has paid so much for a Takeover, such as the agricultural chemical-giant Bayer for the US biotech group Monsanto. 66 billion dollars to the cost of the fun.

The billion acquisition of US biotechnology group Monsanto, Bayer is not perfect. The Bayer announced on Wednesday in Leverkusen, Germany, after a meeting of the Supervisory Board. The pharmaceutical and agricultural chemical group, had increased its offer for Monsanto before. Preceded by a months-long struggle of the two groups was gone.

Bayer and Monsanto signed a binding merger agreement, Bayer signed the Acquisition by Monsanto for US $ 128 per share allows in a bar. This corresponds to a purchase price of approximately $ 66 billion (just under € 59 billion).

World market leader in the field of agricultural chemistry

The Monsanto Deal is the largest Takeover by a German group and makes Bayer the world’s number one in the business with agricultural chemistry. Bayer had announced in may, the controversial biotech giant. Bayer had raised its offer for Monsanto on several occasions. The combined company will be positioned as “very good” to the agricultural sector and its significant long-term growth potential, said Bayer. Bayer plans to Finance the transaction through a combination of debt and equity.

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The Acquisition must still Monsanto shareholders to agree, in addition, the competent anti-trust authorities. The completion of the transaction is expected according to Bayer until the end of 2017.

In the event that the required Antitrust should not be granted, Bayer, Monsanto, a payment in the amount of two billion dollars.

Criticism due to glyphosate and genetic engineering

The Monsanto takeover plans of Bayer CEO Werner Baumann were controversial from the very beginning. Monsanto is in Europe for years because of its genetically modified products in the critique. In addition, Monsanto sells the weed killer glyphosate, which is suspected to be carcinogenic.

Bayer’s CEO stressed, however, the benefits of a merger. The Agarindustrie stand in the face of rapidly growing world population and global warming in front of gigantic challenges. Through the combination of their abilities, Bayer and Monsanto could give groundbreaking answers. After all, by 2050, three billion people would have to be fed in addition. At the same time you have to get the consequences of climate warming on agriculture in the handle.

“Digital Farming”

Interesting for Bayer, the innovative US-based group is not only because of his Expertise in the field of biotechnology, but also because of its leading role in the “digital farming” – the use of digital techniques for agriculture.

The global business around seed and plant protection products, is facing massive upheavals. Since Bayer and Monsanto are not with their merger plans alone. Thus, the US had last-authorities approved the planned billion Takeover of the Swiss agrochemicals group Syngenta by the Chinese state company ChemChina. Last December, Dow Chemical, and Dupont had also announced, to negotiate a merger.

ul/hb (dpa, rtr, afp)