Is another buyout in the works? More information is released on Bayer’s all-cash offer for Monsanto. Sabrina Hill reports.
Listen to the report above.
Bayer’s offer is to acquire all of the issued and outstanding shares of common stock of Monsanto for $122 per share or an aggregate enterprise value of $62 billion. Bayer Chief Executive Officer, Werner Baumann, gave a statement on the proposal, which is available in the audio link above.
On its website, Bayer states the following:
“This transaction would create a leading integrated agriculture platform with a broad product portfolio. The combined business would benefit from a combined R&D pipeline that would deliver valuable and innovative solutions for farmers, with a focus on long-term investments to help advance the next generation of farming.
The proposed acquisition of Monsanto is strategically compelling and completely logical. It would create value for shareholders, customers and employees of both companies alike.
Our all-cash offer is compelling for Monsanto’s shareholders and represents a premium of 37 percent to the unaffected share price. We also expect to create significant synergies and be earnings accretive in the first full year after completion closing. We have a proven track record of integrating businesses and achieving the synergy and value targets we set ourselves.”
Meanwhile, though not making an official statement, Monsanto CEO Hugh Grant tells Fortune Magazine he believes agriculture is a big part of the new industrial revolution, and the company of the future won’t just be selling seeds and chemicals. He says it will incorporate seeds, chemicals and data as a service as well.