Monsanto-Bayer agree on largest acquisition of 2016

According to recent reports out of Frankfurt, Germany, the acquisition negotiations between the German pharmaceutical giant, Bayer, and the U.S. lead producer of genetically engineered seed, Monsanto, have come to a close. 

The Associated Press reports that Bayer has officially accepted a $66 billion all-cash deal to acquire Monsanto after months of negotiations. The deal is valued at $128 per share.

Bayer AG CEO Werner Baumann released this statement on the website that was recently launched in honor of the historic acquisition. 

We are pleased to announce the combination of our two great organizations. This represents a major step forward for our Crop Science business and reinforces Bayer's leadership position as a global innovation driven Life Science company with leadership positions in its core segments, delivering substantial value to shareholders, our customers, employees and society at large.

Initial reports say this acquisition would be the largest all-cash deal to date. The deal is expected to be officially announced prior to the opening of the New York Stock Exchange on Wednesday.

 

 

Monsanto Company (MON) currently sits at $106 per share, pre-market opening, while Bayer AG (BAYRY) is at $104. When news of the proposed deal broke in May, Monsanto's stock price was $89 per share.  

Yahoo Finance reports that Monsanto was trading 1.8 percent higher in the pre-market trading session at 5:30 a.m.

Before everything is finalized, the deal will be subject to approval of Monsanto shareholders, as well as the Federal Trade Commission.


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