Bayer has raised its all-cash offer to Monsanto shareholders from USD 122 to 125 per share two months after its first offer for Monsanto was rejected. Monsanto acknowledged that it has received a revised, non-binding proposal from Bayer for a potential acquisition of Monsanto. They say, their Board of Directors will review the proposal. The revised offer represents a premium of 40 % over Monsanto’s closing share price on May 9, 2016.
Bayer remains confident in its ability to obtain all necessary regulatory approvals in a timely manner given complementary geographic and product portfolios. In addition to certain commitments to regulators, should they be required, Bayer has offered a USD 1.5 billion reverse antitrust break fee, reaffirming its confidence in a successful closing. It is a key concern that the deal between Monsanto and Bayer may invite close review from regulators as it comes in a time of several mega-deals such as Dow and DuPont and Syngenta and China National Chemical Corp. The latter are still waiting for the United States to clear their deal based on any national security concerns.
There are rumors, that BASF started discussions with Monsanto about a possible combination of their agrochemical business.
- Monsanto Company, St. Louis, USA
- Bayer AG, Leverkusen, Germany