Sep 6, 2016

Bayer, Monsanto advance acquisition negotiations

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 $127.50 per Monsanto share in cash. There can be no assurance that the parties will enter into an agreement, according to a Bayer statement.

“Monsanto is continuing these conversations as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives to enable its board of directors to determine if a transaction in the best interests of its shareowners can be realized,” according to a press release by Monsanto.

Monsanto had rejected two previous acquisition proposals from Bayer. The last proposal had offered Monsanto $125 per share.

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.