Report: Bayer Eyeing Monsanto For Possible Mega-Merger

Report: Bayer Eyeing Monsanto For Possible Mega-Merger

Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s largest supplier of seeds and farm chemicals, according to people familiar with the matter, reports Ruth David, Aaron Kirchfeld and Dinesh Nair with Bloomberg.com.

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The German firm has held preliminary discussions internally and with advisers about buying Monsanto, which has a market value of about $43 billion, said the people, who asked not to be named because the deliberations are private.

Bayer, which is valued at about 79 billion euros ($90 billion), has discussed how to finance a deal including potential asset sales, the people said. No final decision has been made and the Leverkusen-based company could decide against a bid or pursue other transactions with Monsanto, including joint ventures or asset sales, the people said.

Representatives for Bayer and Monsanto declined to comment.

Read the full story on Bloomberg.com.

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[…] The transaction creates the largest global integrated seed and pesticide player. Bayer is paying $66 billion for Monsanto – equivalent to $128 per share – in an all-cash transaction financed through debt and equity. This represents a 44% premium over Bayer’s original offer to acquire Monsanto, first proposed on May 9, 2016. […]