Bayer Closes Monsanto Acquisition

Bayer Closes Monsanto Acquisition


Bayer successfully completed the acquisition of Monsanto on Thursday, June 7th. Shares in the U.S. company will no longer be traded on the New York Stock Exchange, with Bayer now the sole owner of Monsanto Company. Monsanto shareholders are being paid 128 U.S. dollars per share. According to the conditional approval from the United States 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.

Liam Condon – a member of the Board of Management of Bayer AG and President Crop Science Division, headquartered in Monheim, Germany, since January 1, 2016 – will lead the combined Crop Science Division when the integration commences. Until that time, Monsanto will operate independently from Bayer. The name Monsanto should disappear with the merger; the company name will be Bayer.

Bayer announced in May 2016 its intention to acquire Monsanto. Since Bayer and Monsanto are doing business almost around the globe, permits had to be obtained in around 30 countries. Bayer got strict conditions so that in the end the purchase price as well as the size of the company parts to be sold turned out higher than originally planned.

Bayer expects the acquisition to contribute $ 1.2 billion annually to its operating income (Ebitda) from 2022 onwards. However, with the acquisition, Bayer takes over high debts and risks and Monsanto has been accused of harsh business practices and is criticized for its herbicide glyphosate.


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