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Bayer takes over Monsanto with a $128 per share offer: Sources

As part of its latest proposal, Bayer is also offering to double, to $3 billion. Photograph: (Getty)

New Delhi, India Sep 14, 2016, 10.03 AM (IST)
US agriculture company Monsanto agreed to a takeover from Bayer with a USD 128 per share offer, Reuters reported on Wednesday.

The companies have agreed on a break-up fee of USD 2 billion, a person familiar with the matter told Reuters. The deal is expected to be closed by the end of 2017, the source said.

The new offer would value Monsanto at USD 56.5 billion.

Bayer chief executive Werner Baumann first made his bid for Monsanto four months ago. The German pharmaceutical and chemical group had initially offered USD 122 per share in May. Monsanto rejected the offer as "incomplete and financially inadequate".

The merger of the two would create a new global leader in agrochemical businesses.

As part of its latest proposal, Bayer is also offering to double, to USD 3 billion, the compensation it would have to pay to Monsanto if the deal is stopped by competition regulators, Rheinische Post said.

“We see the Bayer-Monsanto deal as close to an end,” analysts at Germany’s DZ Bank wrote in a note Wednesday morning, The Wall Street Journal reported. “We don't like the transaction because we think that Bayer is overpaying significantly,” the analysts said.

(WION with inputs from agencies)
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