A fall in the price of glyphosate weed killers to the US seed producer Monsanto prior to its Acquisition by Bayer difficult. In the past fiscal year 2015/16, the net profit dropped by around 43 per cent to the equivalent of 1.2 billion euros, as the company announced. Sales fell year on year by ten percent to 12.1 billion euros. Monsanto got lower prices for his weed control agents on the Basis of a controversial feel to it with glyphosate. This contributed significantly to a decline in sales of 1.1 billion euros in the crop protection business. Bayer wants to buy the US company for the equivalent of nearly 59 billion euros, and had agreed in mid-September after months of struggle with Monsanto. Together with Monsanto, the Leverkusen pharmaceutical and chemical company, the world’s largest suppliers of crop protection products and seed upgrades. Monsanto sees the transaction on course, a degree will continue to be expected until the end of 2017.
Bayer widespread Confidence
In the Bayer group’s headquarters, meanwhile, is widespread Confidence: “Our businesses are complementary in a high degree,” is the standard response to questions about possible objections by the antitrust authorities for the Acquisition of US-based seed producer Monsanto, Bayer. After the Management of the two companies had first agreed two weeks ago to the merger of their agricultural chemical businesses, is a question more and more into the focus: the Competition overseer, the green light for the multibillion-dollar Deal, or the critics find it yet?
Monsanto has a good Image
No one is so convinced of the combination of the two companies, such as Werner Baumann. The Bayer chief Executive, speaks of the merging of the two “great company”. Bayer has been trying through the acquisition of not only heavier and more expensive made for possible hostile Takeover, but has also made its plant protection division, on a broader Basis. The transaction will bring additional shops, such as plant protection, seed business, and digital agriculture under one roof. That Bayer incorporated in a most infamous company, does not interfere with the Leverkusen. The Image of Monsanto is hit because of the controversial pesticide glyphosate and its genetically modified seed business.
plan An examination of the Takeover by the Cartel authority is pending
The Monsanto leadership will now recommend that its shareholders accept Bayer’s cash offer of US $ 128 per share. At a General meeting at the end of the year or the beginning of 2017, the consent is considered almost as a matter of form. Not a form thing, however, is the upcoming review of the merger by the competition supervisors in different countries. A total of approximately 30 antitrust authorities to look into the transfer and impact on competition in the industry under the microscope. the rtr/AFP