Thursday, May 19, 2016

Bayer confirms offer to buy Monsanto – Deutsche Welle

The German chemical and pharmaceutical group Bayer confirmed today (19/05/2016) in a statement the previous information released by the US multinational Monsanto biotechnology that both companies have held talks regarding an acquisition by the German company, operation that materialize would create a giant in the agribusiness sector.

“Representatives of Bayer recently met with members of management of the company Monsanto to speak confidentially on a purchase agreement,” the group German in his statement.

the document recalls that such a merger “would strengthen Bayer as a global company of innovation in life sciences, with leading positions in its core activities and create a leading integrated farming”.

the German group said that his statement responds to the statement released by Monsanto on Bayer’s proposal and, if necessary, publish additional information. Monsanto, meanwhile, had it published a statement in which he claimed to have received a takeover bid from Bayer.

According to Monsanto, which avoided disclosing the amount of the offer is a non-binding and unsolicited proposal. Sources Bayer, on the other hand, confirmed the news and confirmed that company representatives recently met with members of the leadership of Monsanto to speak so reserved on non-binding offer, which amount was not disclosed.

Mexican citizens protest against the use of transgenic seeds from Monsanto.

Giant in the agroindustrial sector?

Monsanto has a market capitalization of over 37,000 million euros. A week ago, rumors had already known about the interest of Bayer. With the merger with Monsanto agricultural business would charge much higher weight in the German company. And the US consortium invoice annually about 15,000 million with the sale of seeds and crop protection products, while Bayer had a turnover last year of 46,300 million euros.

Monsanto currently facing a complicated and just cut growth forecasts for this year now. It has also announced a cut in jobs. A few hours ago, the Wall Street Journal reported on the negotiations and said that, based on data bank Morgan Stanley, together the two companies would control more than a quarter (28 percent) of the sale of plant protection products. They would also be very strong in the United States in the business of cereal seed and soybeans.

In favor of the merger talks that Monsanto is very strong in the US and Bayer in Europe and Asia, something which could serve to justify their alliance to the antitrust authorities. Last year Monsanto tried to buy his Swiss rival Syngenta, which eventually was won by Chinese entrepreneurs

JC (dpa EFE)

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