Bayer increases Monsanto offer

By Melissa Fassbender contact

- Last updated on GMT

(Image: iStock)
(Image: iStock)

Related tags: Stock

Bayer has continued talks with agri-giant Monsanto over the past several weeks, upping its previous offer to the company.

According to Bayer, the all-cash offer to Monsanto shareholders has been raised from USD 122 to USD 125 per share - nearly $55bn in cash.

As previously reported​, analysts suggest the deal could be detrimental the company’s core pharma business.

Craig Smith, pharmaceuticals and healthcare analyst at BMI Research said that if the deal goes ahead, more than half of Bayer’s business will represent agribusiness, which may threaten the company’s “key growth drivers.”

According to the company’s release published today, “Bayer believes that its offer fully captures the intrinsic value of Monsanto, and shares the synergy benefits that the combination would create.”

The company added that it is confident it will obtain all necessary regulatory approvals in a timely manner. It has also offered a $1.5bn reverse antitrust break fee.

Monsanto has acknowledged​ the revised proposal and said it will have no further comment until its Board of Directors has completed its review.

Related topics: Regulatory & Safety

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