Bayer Buy Monsanto in $66 Billion

IAS Prelims 2023

German chemical and pharma giant Bayer announced acquisition of global biotech major Monsanto for $66 billion in largest all-cash deal ever, to create the world’s biggest seed and pesticide firm.

At a total deal value of close to $66 billion – based on 442 million Monsanto shares and the U.S. group’s net debt of $9.3 billion as per end-May – it will be the largest transaction ever involving a German buyer.

It would trump Daimler’s merger deal with Chrysler in 1998, which valued the U.S. carmaker at more than $40 billion. It will also be the largest all-cash transaction on record, ahead of brewer InBev’s $60.4 billion offer for Anheuser-Busch in 2008.

The two companies were in talks to sound out ways to combine their businesses as early as March, which culminated in Bayer coming out with an initial $122 per-share takeover proposal in May.

The deal will create a company commanding more than a quarter of the combined world market for seeds and pesticides in the fast-consolidating farm supplies industry.