Poultry
xClose

Loading ...
Swine
xClose

Loading ...
Dairy & Ruminant
xClose

Loading ...
Aquaculture
xClose

Loading ...
Feed
xClose

Loading ...
Animal Health
xClose

Loading ...
Undefined

 

August 24, 2018

 

Bayer 'completes' conditions for integration with Monsanto

 

 
  
    
 

German pesticide firm Bayer said it has completed its divestment of certain Crop Science businesses to BASF with a total sales volume of around EUR2.2 billion euros, paving the way for the integration of US seeds company Monsanto into the Bayer Group.

 

Bayer already became the sole owner of Monsanto Company last June 7, but as required by the US Department of Justice, Bayer and Monsanto must remain separate companies and continue to operate separately until completion of these divestments to BASF.

 

BASF said it closed the acquisition of Bayer's global vegetable seeds business, mainly operating under the brand Nunhems®, on Aug. 16.

 

Bayer said the acquisition of Monsanto gives rise to a leading agriculture company with a "high level of innovative strength, a strong product portfolio and the highest ethical standards".

 

Bayer also expects that the acquisition will make a positive contribution to core earnings per share starting next year and with a double-digit percentage from 2021 onward. From 2022, it targets annual contributions of US$1.2 billion to EBITDA (earnings before interest, taxes, depreciation and amortization) before special items are planned from synergies.

 

Earlier this year, Bayer obtained conditional approval from the European Commission and the US Department of Justice's antitrust division for its proposed acquisition of Monsanto.

 

According to the DOJ's conditional approval, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been accomplished. 

 

Bayer signed an agreement to sell selected Crop Science businesses to BASF for EUR5.9 billion (US$6.9 billion). The sale was subject to successful closing of Bayer's acquisition of Monsanto.

Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
My eFeedLink last read