Deal Creates Another Major Giant in Seed, Technology, Ag Chemicals

OMAHA (DTN) — Bayer and Monsanto announced early Wednesday they had come to terms on a merger with Bayer acquiring Monsanto for $128 a share in an all-cash transaction.

The boards for both companies unanimously approved the agreement.

With Monsanto’s 442 million outstanding shares, the $128-a-share deal equates to $56.6 billion in cash for shareholders, but Monsanto also reported $9.3 billion in debt. That puts the deal value at just under $66 billion.

“We are pleased to announce the combination of our two great organizations,” said Werner Baumann, CEO of Bayer AG, in a news release. “This represents a major step forward for our Crop Science business and reinforces Bayer’s leadership position as a global innovation driven life-science company with leadership positions in its core segments, delivering substantial value to shareholders, our customers, employees and society at large.”

The Germany-based Bayer initially offered $122 a share in May and came back with a $125 a share offer in July. Last week, Bayer increased the offer to $127.50.

Bayer operates in several industries, but Monsanto is largely an agricultural company. Combined agricultural sales last year from the two companies equaled roughly $25.8 billion 

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