Monday, May 23, 2016

ROUNDUP 2 / Mega acquisition: Bayer wants Monsanto buy 62 billion US dollars – FAZ – Frankfurter Allgemeine Zeitung

LEVERKUSEN / ST. LOUIS (AFX) – The German pharmaceutical and chemical company Bayer & lt; BAYN.ETR & gt; wants the US agrochemical specialists Monsanto & lt; MON.NYSE & gt; swallow for 62 billion US dollars. “We have long been impressed by Monsanto and share the conviction that there would be through an integrated business significant value for shareholders of both companies,” said Bayer CEO Werner Baumann on Monday, according to announcement. He took the helm at Bayer only three weeks ago.

With the acquisition Bayer would ascend to the world’s largest agrochemical manufacturer. Last Thursday, the two companies had already confirmed takeover talks. For current listing Monsanto has so far not commented.

As the DAX companies, announced on Monday, 122 US dollars offer Leverkusen depending Monsanto shares (108,70 euros) in cash. To said total price nor the debt of Monsanto are added. On Friday the shares on the New York Stock Exchange at $ 101.52 closed. The writing submitted offer corresponds to a premium of 37 percent to the closing price of Monsanto shares two weeks ago, said Bayer. Shortly after first takeover speculation had arisen.

To finance Bayer is next to the use of leverage on a capital increase. The equity portion should cover around 25 percent, it said. Already last Thursday the takeover talks had heavily burdened the Bayer stock price and the Monsanto-rating driven vigorously into the air. On Monday, Bayer shares fell premarket at broker Lang & amp; Black by another 3 percent.


Bayer is prepared to quickly begin the due diligence to enter into negotiations and rapidly reach an agreement on a transaction. The transaction is under customary closing conditions.

The merger is to make the first full year after completion of the transaction a positive contribution to adjusted earnings per share in the mid-single digits, and later in the double-digit percentage, according to Bayer. The synergies are likely to be around 1.5 billion dollars per year after three years, the report said.


In the chemical industry has long been seething the rumor mill about the future of the companies that have specialized in the business of agriculture. This is due to lower prices for agricultural products, the turmoil in the emerging markets and the recession in Brazil for some time under considerable pressure. For this reason also the world’s largest chemical company BASF and was lt; BAS.ETR & gt; been mentioned as a possible prospect for Monsanto.

The US company, in turn, is to strengthen its seed business for some time and had even repeatedly taken to separate acquisitions or partnerships in conventional crop protection in the eye. Recently, Monsanto was but but failed with its takeover plans in Europe.

So Monsanto flashed lt about last year at the Swiss group Syngenta &; SVJ.FSE & gt; & Lt; SYNN.VTX & gt; from. This will now be the Chinese company ChemChina swallow for $ 43 billion. Now Monsanto has itself become a takeover candidate, especially as the company’s share price was in the past, partly due to a capped profit forecast under pressure.


In the chemical industry, the fusion carousel rotates not only the business of agricultural commodities. So US corporations Dow Chemical Plan & lt; DCH1.ETR & gt; & Lt; DOW.NYS & gt; and Dupont & lt; DD.NYS & gt; & Lt; DUP.FSE & gt; their merger. They would thus once the industry leader BASF dethrone. However, the two US corporations want to split following the proposed merger in three listed companies, including a powerful agricultural chemical company.

Bayer itself has focused recently aimed primarily at pharmaceutical business. So that was lt in the daughter Covestro &; 1COV.ETR & gt; brought parked chemicals business partly due to the stock market. Currently keep Leverkusen still 64 percent – but Bayer wants to completely separate from Covestro. Also, the veterinary business could werden./jha/stk/das used according to analysts for the financing of mega takeover


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