Cornucopia’s Take: Bayer, a German pharmaceutical and pesticide company, has announced its intention to buy Monsanto. This move will consolidate control over agricultural products even further.
Chemical Giant Bayer Agrees To Buy Monsanto For $66 Billion
NPR – The Two-Way
by Camila Domonoske
The German pharmaceutical and chemical giant Bayer says it will buy U.S. seed seller Monsanto for $66 billion in an all-cash deal that will create the world’s largest supplier of seeds and agricultural chemicals.
The takeover offer, which Monsanto has accepted, is $4 billion more than Bayer had initially offered and a 44 percent premium over Monsanto’s stock price on May 9, a day before negotiations began. Bayer says it will be taking on $57 billion in debt to finance the purchase, which is the largest-ever foreign acquisition by a German company.
The two companies have little product overlap, NPR’s Jim Zarroli explained back when the deal was being negotiated. But regulators might still be wary of the purchase, based on the combined control the company would have over agricultural products.
