Bayer buying Monsanto, will create global chemical, ag giant
American seed and weed-killer company Monsanto and German medicine and farm chemical maker Bayer are combining in a deal that could help farmers produce higher yields to address challenges from global warming to rising food demand from a fast-growing global population.
Consumers could benefit from more-affordable and healthier food options as well as the companies’ using their expertise to help farmers limit their chemical use and environmental impact, company executives said Wednesday after the all-cash deal was announced.
It comes amid record harvests driving crop prices to painfully low levels for many farmers.
After four months of courtship, Leverkusen, Germany-based Bayer AG said Monsanto Co. accepted its third offer. In addition to the $57 billion price for shareholders, Bayer is assuming $9 billion in Monsanto debt. It will pay Monsanto shareholders $128 per share, $6 above its initial offer and a 44 per cent premium over the St. Louis company’s closing price before rumours of a bid emerged.