Mon­santo ac­cepts sweet­ened $56.5 bil­lion bid from Bayer

The Myanmar Times - - International Business -

US seed and pes­ti­cide gi­ant Mon­santo has agreed to a sweet­ened takeover bid from the Ger­man phar­ma­ceu­ti­cal and chem­i­cal group Bayer, Bloomberg re­ported yes­ter­day.

The agency quoted sources close to the deal, and said the ne­go­ti­a­tions con­tinue, with the fi­nal fig­ures in the mega-deal apt to change.

Mon­santo’s board of di­rec­tors met on Septem­ber 13. Sev­eral news out­lets in­clud­ing the Ger­man news­pa­per Rheinis­che Post said Bayer is of­fer­ing an in­creased US$129 per share for Mon­santo, com­pared with the $127.50 it pro­posed last week.

The new of­fer would value Mon­santo at $56.5 bil­lion.

Bayer made a first all-cash of­fer in May of $122 per share, which Mon­santo re­jected as “fi­nan­cially in­ad­e­quate”. The Ger­man com­pany’s sec­ond of­fer was $125 per share.

A merger will cre­ate a new global leader in ge­net­i­cally mod­i­fied seeds and pes­ti­cides.

The pro­posed tie-up has rung alarms bells for some farm­ers who fear the power of the com­bined com­pany in the mar­ket for seeds and pes­ti­cides, while op­po­nents of ge­net­i­cally mod­i­fied food in Europe worry about Mon­santo’s in­flu­ence on the con­ti­nent. –

Photo: AFP

The Ger­man head­quar­ters of US chem­i­cal gi­ant Mon­santo in Dues­sel­dorf, western Ger­many. US seed and pes­ti­cide maker Mon­santo is in talks with Ger­man chem­i­cal gi­ant Bayer over a pos­si­ble merger of their two agro­chem­i­cals di­vi­sions.

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