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Germany/US: Bayer Makes a $62 Billion Bid for Monsanto

 |  May 23, 2016

Germany’s Bayer has offered $62 billion for US agricultural group Monsanto in a move that would create the world’s biggest supplier of seeds and fertilizers. The takeover bid is subject to regulatory approval.

German drugs and chemicals group Bayer said Monday it had offered $62 billion (55 billion euros) for US agrochemicals giant Monsanto. Should the transaction be finalized, the merger would create the world’s biggest producer of pesticides, seeds and fertilizers.

Bayer said in a statement it had made a cash offer of $122 per share, following weeks of speculation about a possible tie-up.

Monsanto had first disclosed Bayer’s approach last Wednesday, but neither side had provided details on any proposed terms of the deal.

Bayer said it was in advanced discussions with banks about financing the deal, and said any money it would have to borrow to finalize the deal could be quickly repaid due to “the strong cash-flow generation of the combined business, as well as Bayer’s track record of disciplined deleveraging after large acquisitions.”

Full Content: DW

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