Bayer $66 billion acquisition of Monsanto

Overview:

• Bayer has acquired Monsanto for $66 billion. 
• Beside the transaction between Bayer and Monsanto, BASF has signed an agreement to purchase some of Monsanto's assets including entire seed business.
• The German drug and chemical group's initial takeover offer for the US target, which is known for pioneering the development of GM seeds, of $122 per share in May, 2016 was rejected, as was a subsequent $125 per share bid in July, 2016, but the two parties continued to negotiate. 
• Bayer's successful offer of $128 per share represents a 44% premium on the closing price of Monsanto's shares on the day prior to the German company's first bid.   
• The German buyer has financed the takeover through bank loans and a $19 billion equity offering of mandatory convertible bonds and a rights issue with subscription rights.
• BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JPMorgan have committed to provide the bank debt through a bridge financing of $57 billion. 
• In 2016 ChemChina has made a bid $43 billion for Swiss agribusiness company Syngenta, gazumping Monstanto in the process.

Ben Naylor - Regional Editor