News Takeover
Bayer removes Monsanto from the books
Chemical giant Bayer closes the acquisition of competitor Monsanto on June 7. This puts an end to the acquisition, which was announced in May 2016. The European and American authorities have all agreed. With the takeover, the Monsanto name also disappears in the history books.
For many critics, Monsanto is synonymous with genetic engineering, RoundUp, and GM corn, soy and other crops. There is a good chance that acquisition partner Bayer has therefore decided to no longer use the name. That makes it June 4th known† During the takeover period, the name Baysanto was frequently used in the media.
63
billion sek
Long takeover process
Bayer expects to finalize the acquisition on Thursday 7 June. This puts an end to the more than two-year acquisition process. In May 2, both companies announced that they were working on an acquisition. In September of that year, the amount followed: $2016 per share. That now amounts to $128 billion. Bayer does not have to cough up the full amount. The sale of some branches brought in €63 billion, but cost €2,2 billion to purchase.
Positive expectation
Bayer chairman Werner Baumann calls the acquisition a strategic milestone for the German company. It is by far the largest acquisition in company history, increasing the number of employees to 115.000. For the financial year, turnover is expected to be approximately equal to 2017 (€20 billion). Share value growth is expected in 2019, which should write 2021 digits in 2.
After the last lights in the United States also went green, nothing stood in the way of the takeover at the end of May. Now we have to wait for certain industries to be dismissed from BASF. After a wave of acquisitions, the market has now been consolidated into 4 companies in the world of crop protection products and seeds: Bayer (Monsanto), BASF, Dow Dupont and ChemChina (Syngenta).
Niels van der Boom
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