Yesterday, Bayer has officially offered $62 billion in cash for Monsanto. This $122 per share all-cash offer is a 37 % premium over Monsanto’s closing share price of $89.03 on May 9, just before rumors of the acquisition circulated. Monsanto today announced that its Board of Directors views the Bayer proposal as “incomplete and financially inadequate”.
Hugh Grant, Monsanto Chairman and CEO, said that “the current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.” However, Monsanto is open to “continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved”.
The acquisition would create a global agriculture leader with a presence in US, Europe, and Asia.
- Monsanto Company, St. Louis, USA
- Bayer AG, Leverkusen, Germany
Bayer Negotiates Acquisition of Monsanto,
ChemistryViews.org 19 May 2016
Monsanto confirmed that it has received an unsolicited, non-binding proposal from Bayer for a potential acquisition