Bayer announced Monday to have about 62 billion dollars (55 billion euros) for the acquisition of the US company. Monsanto has already pointed out that it has received an unsolicited bid from Bayer, without reporting to the price it was.
Monsanto says definitely see benefits in a deal with Bayer. However according to the current bid reflects chief executive Hugh Grant is not the value of the company. In addition, there remain in his care too much about the financing of the transaction and the consent of existence supervisors.
Main
The acquisition would create the world’s largest producer of agrochemicals and seeds emerge. Monsanto is already the largest supplier of seeds and is a pioneer in the field of genetically modified crops
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The proposal Bayer fits into consolidation in the seed and crop industry. There just seems to be room for some big players who can make a variety of products and services to farmers.
In this context, Monsanto itself tried unsuccessfully last year to take over the Swiss pesticide maker Syngenta, nearly 44 billion dollars . Syngenta will now be taken over by the state chemical company in China. In addition, the US chemicals giant Dow Chemical and DuPont will merge. In addition, the activities in the field of agriculture split off into a separate company.
Profit Warning
Despite its leading position has on the seed market, Monsanto it is currently difficult. The company issued this year a profit warning and is at odds with leading trading firms and governments in Argentina and India. In addition, turn the sharp decline in commodity prices pressure on the income of farmers.
Analysts expect Bayer’s bid, which now stands at $ 122 per share, will increase. A price lower than $ 135 per share would thereby be difficult to accept for the American company
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