Bayer and Monsanto appear to be getting closer to a deal as negotiations seem to be in the final stretch. An agreement between the two companies would allow them to merge into the world’s biggest seed and pesticide maker. Bloomberg reports that people familiar with the matter say a deal could be reached as early as next week. The Bayer supervisory board is scheduled to meet this week to discuss the deal and Monsanto’s board will meet next week. Bayer announced “advanced negotiations” this week and a higher offer to Monsanto of $127.50 per share, roughly $65 billion, which is 18 percent above Monsanto’s closing price last week. People familiar with the deal who asked not to be indentified say that Monsanto wants a price closer to $130 per share. They’re also said to be discussing the fee that Bayer would pay Monsanto if the deal doesn’t get approval from regulators.
From the National Association of Farm Broadcasting news service.
From: Bayer
Negotiations regarding Monsanto acquisition advance
Bayer confirms advanced negotiations with Monsanto concerning a proposed transaction. While key terms and conditions have not yet been agreed, Bayer would be prepared to provide a transaction consideration of USD 127.50 per Monsanto share only in connection with a negotiated transaction. There can be no assurance that the parties will enter into an agreement.
The proposed transaction would be subject to regulatory approval and other customary closing conditions. The key conditions of a definitive transaction agreement must be approved by the Supervisory Board of Bayer AG.
For more information please visit: www.advancingtogether.com