Tuesday, September 6, 2016

Bayer raises for Monsanto more than 65 billion. The seeds of the world concentrated in a few hands – The Republic

MILAN – New episode in the saga of the acquisition with which Bayer is trying to bring home the American Monsanto, giant seed: the consortium Leverkusen raised for the acquisition of Monsanto, and increased the supply to more than 65 billion dollars, equivalent to $ 127.50 per share. The announcement was made during the night the same German drugmaker, which stood at $ 125 per share in the previous offer.

“Bayer confirms progress in negotiations for the planned acquisition of Monsanto”, is detailed in a statement, “the conditions precise have not yet been fixed. ” Even the American company confirmed this morning “constructive negotiations”, reports the ‘ Handelsblatt : “The Bayer offer came, and now will be evaluated.”

The new proposal improved by 2 percent the previous offer of Bayer and represents a 19 percent premium over the last closing price of Monsanto. The enthusiasm on the last offer, which values ​​the Monsanto about $ 56 billion, excluding debt, however, is hampered by the Germans: “There is no guarantee that an agreement will be reached,” explained Bayer.


On the other hand, already in July Monsanto had returned to the offer from $ 125 per share, considering it “inadequate” from a financial standpoint. But even then he had stressed that the doors were open to any new negotiations. That things should be done with feet of lead is the fact that the merger would create the largest chemical company applied to agriculture in the world, and it would be the largest operation in the chemical industry. A sector in great excitement: as noted by the FT, Dow Chemical and DuPont are trying to get to close the wedding later this year, while ChemChina is completing the acquisition of the Swiss Syngenta. The downside of these waves of consolidations is that more than half of the world’s seeds will be in the hands of a handful of companies.

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Bayer
monsanto
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