May 23, 2016

Bayer makes Monsanto $62 billion offer

Bayer has made an all-cash $62 billion offer to acquire Monsanto. Bayer would acquire all of the issued and outstanding shares of common stock of Monsanto Company for $122 per share.

Bayer’s proposal was submitted to Monsanto on May 10.

Under the proposed transaction, the combined business would have its global Seeds & Traits and North American commercial headquarters in St. Louis, Missouri, its global Crop Protection and divisional Crop Science headquarters in Monheim, Germany, and an important presence in Durham, North Carolina, as well as other locations throughout the U.S. and around the world. Digital Farming for the combined business would be based near San Francisco, California.

Bayer’s Board of Management and Supervisory Board unanimously approved the proposal and are fully committed to pursuing the transaction, the company said in a statement. Bayer is prepared to proceed immediately to due diligence and negotiations and to quickly agree to a transaction, the company said. The transaction will be subject to customary closing conditions.

BofA Merrill Lynch and Credit Suisse are acting as lead financial advisors to Bayer and support the financing of the transaction; Rothschild has been retained as an additional financial advisor to Bayer. Bayer’s legal advisors are Sullivan & Cromwell LLP (M&A) and Allen & Overy LLP (Financing).