Monday, May 23, 2016

5 / Bayer plans to mega deal: offered 55 billion euros for Monsanto – ABC Online

Monday , 05.23.2016, 21:25
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The pharmaceutical and crop protection giant Bayer wants to take over the controversial biotechnology company Monsanto for more than 55 billion euros and thus ascend the world’s largest agrochemical manufacturer.

It would be one of the most expensive acquisitions of German economic history. On the stock market announcement of the offered purchase price made on Monday for further losses of Bayer stock.

Bayer CEO Werner Baumann defended its takeover plans despite the reservations of shareholders. The agribusiness stand in view of the rapidly growing world population and global warming before gigantic challenges. By combining their capabilities Bayer and Monsanto could give pioneering answers here. Of the agriculture, but also the private shareholders would benefit


The Leverkusen would ascend through the merger the world’s number one in the agricultural chemicals business. Group sales would at around 60 billion euros (previously: 46.3 billion) specify the number of employees to almost 140,000 (previously: almost 117 000). Climbing

For Bayer wants to dig deep into their pockets , The Dax Corporation provides each Monsanto shares 122 US dollars in cash – a total of 62 billion dollars. The offer represents a premium of 37 percent to the closing price of Monsanto shares before the announcement of the first takeover speculation. On Monday, the Anteillscheine of US seed producer submitted last by 5.06 percent to $ 106.66 for.


To finance Bayer is also a capital. The offer price is once again significantly higher than the nearly 40 billion dollars that Daimler in 1998 paid for Chrysler, and also exceeds the 50 billion dollars that the German Telekom in 2000 at the height of the telecommunications boom of the US rival VoiceStream hinblätterte.

“We have long been impressed by Monsanto,” Baumann justified the move. Not least, the leading role of the Americans in biotechnology and the “digital farming” – the use of digital techniques for agriculture – make Monsanto attractive. After three years, expect Leverkusen through the merger with savings of about 1.5 billion dollars a year.


disadvantages for the German Bayer employees are, according to the IG BCE excluded. The agreements on job security remained untouched, get all the locations, said the union. The research and development remain continue to be located in Germany. The Bayer council welcomes the proposed merger. “The acquisition of Monsanto permanently ensures the sustainability of Bayer,” said Central Works Chef Oliver Zühlke the “Rheinische Post” (Tuesday). The Group has, among other things bound to adhere to 2020 on protection against dismissal.

received support Bayer’s CEO also of the German protection combination for security possession (DSW). Their chief executive Marc Tüngler told Deutsche Presse-Agentur: “We think it’s right that Bayer starts this test.” The company offers a unique opportunity to become the world market leader – even if it is to be lowered possibly would increase again. ” / p>


environmentalists and the parliamentary group of the Greens see the merger contrast critical. The Association for the Environment and Nature Conservation Germany (BUND) warned the group apparently wants to set strengthened despite all social resistance to genetic engineering.

Monsanto is in Europe for years because of its genetically modified products in the criticism. In addition, has long been debated about possible harmful effects of the substance glyphosate, the use Monsanto in its most popular weed killer “Roundup”. Bayer believes the image problems, however, manageable.


At the shareholders coming unanimously adopted by Bayer Management Board and Supervisory Board have been bid so far, however not good at , Already the first announcement of the plans a few days ago had sent Bayer stock is plummeting. The announcement of the purchase price was the price after the market opening on Monday again yield by almost six percent.


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