Thursday, May 19, 2016

ROUNDUP 3 / speculation confirmed: Bayer courting US group Monsanto – FAZ – Frankfurter Allgemeine Zeitung

(New: share price and voices from the stock market in the third paragraph)

LEVERKUSEN (AFX) – Bayer & lt; BAYN.ETR & gt; will be lt agricultural chemicals business with the purchase of the US company Monsanto &; MON.NYS & gt; bling. A Bayer spokesman confirmed on Thursday morning in Leverkusen discussions regarding a possible bid. Previously, the US group had announced in St. Louis that he had received an unsolicited, non-binding offer of the German pharmaceutical and agricultural chemical company. Bayer shares plummeted in the morning.


Financial terms called the US company listed on the stock market is currently 42.4 billion dollars (37.8 billion euros) will be evaluated not, , Bayer is a market capitalization of nearly 80 billion euros. The Board of Directors of Monsanto’s offer will now examine. is pending the aforementioned review, there will be no further communication from the company, it said. Bayer also kept covered with details.

the Dax-company stocks fell in the morning at times more than six per cent to under 90 euros – that was the lowest price since October 2013. In the case of acquisition of Monsanto threatened to assessment of market watchers a capital. In addition, Bayer would probably lt for financing by the subsidiary Covestro &; 1COV.ETR & gt; disconnect said one trader. Volker Braun, an analyst at Bankhaus Lampe provides for Bayer no reason to take a hasty deal with Monsanto. There were plenty of other takeover opportunities in the industry – at better prices and a vorteilhafterem risk profile


About a Bayer bid for Monsanto has recently been speculated.. So the Bloomberg news agency had reported last Thursday that Bayer explores a quote. The share price of the German company has since appeared to slightly more than three percent. The Monsanto shares deposited in turn by almost eight percent.

In the chemical industry has long been seething the rumor mill on the future of companies that specialize in the business of agriculture. This is due to lower prices of agricultural commodities, the turmoil in the emerging markets and the recession in Brazil for some time under considerable pressure.


For this reason, the world’s largest chemical company BASF and was lt; BAS.ETR & gt; been mentioned as a possible prospect for Monsanto. Many experts had previously held a full takeover by one of the German companies rather unlikely. For example, an analyst John Klein from the private bank Berenberg had indeed held a collaboration between Monsanto and Bayer or BASF possible. Takeovers or mergers he countered for less likely.

The US company, which is constantly under fire for its genetically modified products, intends to strengthen its seeds business for some time and had to itself again own acquisitions or partnerships in conventional crop protection envisaged. Recently, Monsanto was but failed several times with its acquisition plans in Europe.


So the group flashed about last year at the Swiss group Syngenta & lt; SVJ.FSE & gt; & Lt; SYNN.VTX & gt; from. This will now be the Chinese company ChemChina swallow for 43 billion US dollars. Now Monsanto has itself become a takeover candidate, especially as the company’s share price is for some time, among other things because of a recently 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


Bayer itself has focused recently aimed primarily at pharmaceutical business , So the parked with the daughter Covestro chemical business was transferred partly to the stock exchange. Currently keep Leverkusen still 64 percent – but Bayer plans to divest as soon as possible complete by Covestro.

Again and again was also speculation about whether Bayer will, separate from the division Crop Science, in which the business is bundled with agricultural materials. But now is the area which with 10.4 billion euros a little over one-fifth contributed 2015 consolidated sales to be strengthened. Bayer itself said on Thursday the fact that with a Monsanto-acquisition core business will be strengthened.


Monsanto set last year by 15 billion and came up with a profit of 2.3 billion dollars. According to a report of the “Wall Street Journal” According to, based on a study by Morgan Stanley, the two companies would sell around a quarter of the pesticides sold worldwide. For a merger talks that Monsanto is situated more in the US, Bayer in Europe and Asia. This could the company bescheren./zb/stk/she even better cards in the competition watchdogs


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