Ante Upped on Bayer Monsanto Merger – Billions on the Table
The possibility of a merger between German pharmaceutical and chemical company Bayer AG and multinational seed and pesticide corporation Monsanto Co. has just increased with the recent rounds of discussions between the two companies.
Having been in discussion regarding Bayer’s potential purchase of Monsanto for some time, Bayer has now suggested that it is now willing to offer more than $65 billion dollars. This is a two percent increase from the previous offer made by Bayer. On the other side of the deal, Monsanto has agreed to open its books for Bayer to conduct thorough checks into the company’s business status.
Bayer’s previous offer was already considered the biggest all-cash takeover bid on record. Bayer has stated that it is prepared to offer 127.50 per share – $2.50 more per share than its previous offer. “Both sides are gradually nearing consensus,” said one person familiar with the discussions and quoted by Reuters.
READ: Hidden History Of Bayer: IG Farben, Standard Oil, Wall Street, Nazi Germany (Video)
If Bayer does indeed purchase Monsanto it will give the company the opportunity to become one of the top dogs in the “farm supplies industry” an already highly consolidated market.
Bayer would be combining its crop science aspect with Monsanto’s near-monopoly in seeds. Monsanto has stated that it is continuing the conversation with Bayer. As well as evaluating Bayer’s offer, it also stated that it was evaluating proposals from other prospective buyers although it declined to name these other parties.
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